Sales of a desk lamp that wholesales at 4 per lamp have


Sales of a desk lamp that wholesales at $4 per lamp have been disappointing. The contribution of each lamp sold is $1.5. It is planned to increase the advertising budget by $0.22 per lamp and to reduce the price in order to spur sales. Twice as much will be allocated for advertising as for price reduction. Current gross profit is $50,000 on sales of 100,000 lamps per year. How many lamps must be sold under the proposed conditions to double the profit? 

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Sales of a desk lamp that wholesales at 4 per lamp have
Reference No:- TGS01550142

Expected delivery within 24 Hours