If gross margin is 40 per unit does cutting the promotion, Operation Management

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If gross margin is 40 per unit does cutting the promotion

A firm thinks its consumer promotion expenditures are too high, and wants to cut $500,000 from the budget. Management estimates it will lose 10,000 units in sales if it does. If gross margin is $40 per unit, does cutting the promotion budget make sense?

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Operation Management: If gross margin is 40 per unit does cutting the promotion

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