Question: Exercise 1 2 - 1 7 ( Algo ) Special promotion effects of a two - for - one sale LO 1 2 - 8
Exercise Algo Special promotioneffects of a twoforone sale LO
Jen and Barrys ice cream shop charges $ for a cone. Variable expenses are $ per cone, and fixed costs total $ 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 additional cones would be sold and that cones would be given away. Advertising costs for the promotion would be $
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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