Discuss the incremental analysis approach

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Question: Refer to the original data. Assume again that the company sold 45,000 units last year. The president feels that it would be unwise to change the selling price. Instead, he wants to increase the sales commission by $3.80 per unit. He thinks that this move, combined with some increase in advertising, would double annual unit sales. By how much could advertising be increased with profits remaining unchanged? Do not prepare an income statement; use the incremental analysis approach.

Reference no: EM131517494

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