Every Halloween, Peterson's Ice Cream Shop offers a trick-or-treat package of 25 coupons for $20. The...

 

Transcribed Image Text:

Every Halloween, Peterson's Ice Cream Shop offers a trick-or-treat package of 25 coupons for $20. The coupons are redeemable by children 12 years or under, for a single-scoop cone, with a limit of one coupon per child per visit. Coupon sales average 1,080 books per year. The printing costs are $135. A single-scoop cone of Peterson's ice cream normally sells for $2.00. The variable costs of a single-scoop cone are $1.50. Required a. Determine the loss if all coupons are redeemed without any other effect on sales. $ 19,035 b. Assume all coupons will not be redeemed. With regular sales unaffected, determine the coupon redemption rate at which Peterson's will break even on the offer. Note: Round your answer to the nearest full percentage point. 0 * % c. Assuming regular sales are not affected and one additional single-scoop cone is sold at the regular price each time a coupon is redeemed, determine the coupon redemption rate at which Peterson's will break even on the offer. Note: Round your answer to the nearest full percentage point. 0 * % d. Determine the profit or loss incurred on the offer if the coupon redemption rate is 60% and: 1. One-fourth of the redeemed coupons have no effect on sales. 2. One-fourth of the redeemed coupons result in additional sales of two single-scoop cones. 3. One-fourth of the redeemed coupons result in additional sales of three single-scoop cones. 4. One-fourth of the redeemed coupons come out of regular sales of single-scoop cones $ 0 Every Halloween, Peterson's Ice Cream Shop offers a trick-or-treat package of 25 coupons for $20. The coupons are redeemable by children 12 years or under, for a single-scoop cone, with a limit of one coupon per child per visit. Coupon sales average 1,080 books per year. The printing costs are $135. A single-scoop cone of Peterson's ice cream normally sells for $2.00. The variable costs of a single-scoop cone are $1.50. Required a. Determine the loss if all coupons are redeemed without any other effect on sales. $ 19,035 b. Assume all coupons will not be redeemed. With regular sales unaffected, determine the coupon redemption rate at which Peterson's will break even on the offer. Note: Round your answer to the nearest full percentage point. 0 * % c. Assuming regular sales are not affected and one additional single-scoop cone is sold at the regular price each time a coupon is redeemed, determine the coupon redemption rate at which Peterson's will break even on the offer. Note: Round your answer to the nearest full percentage point. 0 * % d. Determine the profit or loss incurred on the offer if the coupon redemption rate is 60% and: 1. One-fourth of the redeemed coupons have no effect on sales. 2. One-fourth of the redeemed coupons result in additional sales of two single-scoop cones. 3. One-fourth of the redeemed coupons result in additional sales of three single-scoop cones. 4. One-fourth of the redeemed coupons come out of regular sales of single-scoop cones $ 0

Answer rating: 100% (QA)

Answer Petersons Ice Cream Shop TrickorTreat Coupon Analysis a Loss if All Coupons Redeemed Coupons sold books 1080 Coupons per book 25 Total coupons ... View the full answer