ocr: Introduction The tollowing two suggestions have been proposed in order to improve the company's cash position. Proposall Raise the unit price from £40to £50. - A price increase vould, however, reduce unit sales by 10% each month. Purchases would also be reduced by 10%0. Proposal 2 Put the company's sales force on straight commission. This would reduce tixed marketing and administrative costs to €2,000 per month and raise variable marketing and administrative costs to E8 per unit. You should attempt your own solutions - maybe by building an appropriate spreadsheet - before looking at the impact ...
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