Question: Exercise 1 2 - 1 7 ( Algo ) Special promotion effects of a two - for - one sale LO 1 2 - 8

Exercise 12-17(Algo) Special promotioneffects of a two-for-one sale LO 12-8,12-9
Jen and Barrys ice cream shop charges $1.7 for a cone. Variable expenses are $0.37 per cone, and fixed costs total $2,400 per month. A Valentines Day promotion is being planned for the second week of February. During this week, a person buying a cone at the regular price would receive a free cone for a friend. It is estimated that 650 additional cones would be sold and that 850 cones would be given away. Advertising costs for the promotion would be $160.
Required:
Calculate the effect of the promotion on operating income for the second week of February.
Do you think the promotion should occur?

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