Planned to increase the advertising budget

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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?

Reference no: EM131166880

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