Last year, Wildhorse sold 40,000 ankle supports. The company's marketing manager is convinced that a 10%...

  

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Last year, Wildhorse sold 40,000 ankle supports. The company's marketing manager is convinced that a 10% reduction in the sales price, combined with a $50,000 increase in advertising, will result in a 31% increase in sales volume over last year. Compute the projected income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Should Wildhorse implement the price reduction? Last year, Wildhorse sold 40,000 ankle supports. The company's marketing manager is convinced that a 10% reduction in the sales price, combined with a $50,000 increase in advertising, will result in a 31% increase in sales volume over last year. Compute the projected income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Should Wildhorse implement the price reduction?

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To compute the projected income we can follow these steps 1 Calculate the ... View the full answer