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For product a a 10 increase in investment increases the

Resource Allocation problem

For product A, a 10% increase in investment increases the quantity sold by 5% whereas for product B, a 10% increase in investment increase quantity sold by 20%. The current unit sales level of Product B is twice that of Product A. The margins (in $ terms) for Product B is three times that of Product A. How will you allocate a budget of 1 million between these two products?

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Business Management: For product a a 10 increase in investment increases the

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