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9) (4 points) Use incremental analysis to evaluate the effects of a 2 for 1 sale at Jen and Lenny's ice cream parlor using the
9) (4 points) Use incremental analysis to evaluate the effects of a 2 for 1 sale at Jen and Lenny's ice cream parlor using the contribution concept. Jen and Lenny's charges $9 for a triple-dip ice cream cone. Variable expenses are $3.00 per cone. A summer promotion is planned for the last week of August. During this week, a person buying a cone at the regular price would receive a free cone for a friend. An estimated 800 additional cones would be sold with 1,000 cones given away. Advertising costs for the promotion would be $400. Calculate the following for the last week in August. Round to the nearest cent or unit. Then explain if the promotion should occur. Quantity Cones Made (Sold and Given Away) Total ($) Per Unit ($) Total Revenue and Selling Price per Unit Total Variable Cost and Variable Cost per Unit Total Contribution and Contribution per Unit Total Fixed (Advertising) Cost Fixed Cost (Advertising) per Unit Total Profit/Loss and Profit/Loss per Unit Explanation
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