For O’Brien Company, selling price is $30 per unit and variable cost are $18 per unit. Fixed cost ar

For O’Brien Company, selling price is $30 per unit and variable cost are $18 per unit. Fixed cost are $90,000. O’Brien expects to sell 9,000 units next year. O’Brien feels if they increasing annual advertising by $20,000, they can increase unit sales by %5 despite raising the selling price by $1 per unit. What effect will these changes have on O’Brien’s profit?

 

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