申論題

Problem one : The following monthly data are available for the Cost Company and its only product,Product Q:

c. Assume that Cost Company is currently selling 400 units of Product Q per month. Management wants to increase sales and feels this can be done by cutting the selling price by $25 per unit and increasing the advertising budget by $20,000 per month. Management believes that these actions will increase unit sales by 50%. Should these changes be made?