Business Mathematics 13th Edition by Gary Clendenen,Stanley Salzman

Exercise 3

Therefore, an increase in advertising of $1200 results in $3000 more gross profit. Given this information, Alcorn's first thought was to borrow $5000 from a bank and advertise a lot. Then she began to wonder. What suggestions do you have for her? Should she borrow $5000 and advertise? Why or why not (based on your intuition)? _____