Question: Rumba Dance Hall is considering offering a wedding reception package that includes the ballroom rental, decorations, a wedding cake, punch, and paper goods for $6,000.

Rumba Dance Hall is considering offering a wedding reception package that includes the ballroom rental, decorations, a wedding cake, punch, and paper goods for $6,000. Currently, the company is renting the ballroom with no extras at $4,500. The extras will cost $800. Determine if the new package is profitable and by how much.

a). increases profits by $800.
b). decreases profits by $800.
c). cannot be determined from the information given.
d). increases profits by $700.

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