Question: Alternative 2 To attract sufficient demand to utilize full capacity would require a 20% reduction in the current selling price and a $8,000 special advertising

Alternative 2 To attract sufficient demand to utilize full capacity would require a 20% reduction in the current selling price and a $8,000 special advertising campaign. Further, it has been estimated that due to the increased volume, direct material cost will reduce to $5 per unit and direct labour cost will reduce to $10 per unit

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