Allison Guthrie has recently acquired a franchise of a well-known fast-food restaurant chain. She is considering a special promotion for a week during which hamburger prices would be reduced $0.50 from the regular price of $1.10 to $0.60. Local advertising expenses for this special promotion will amount to $400. Allison expects the promotion to increase sales of hamburgers by 10% and French fries by 8%, but she expects the sales of chicken sandwiches to decline by 10% (because some customers, who otherwise may have ordered a chicken sandwich, will order a hamburger instead because of its attractive low price). The following data have been compiled for sales prices, variable costs, and weekly sales volumes: g (Click the icon to View the data.) Requirement Evaluate the expected impact of the special promotion on sales and profits. Should Allison go ahead with this special promotion? What other considerations are relevant in this decision? Requirement Evaluate the expected impact of the special promotion on sales and profits. Should Allison go ahead with this special promotion? What other considerations are relevant in this decision? (Use a parentheses or a minus sign to show decreases and a net decrease in profit with promotion.) Chicken French Hamburgers sandwiches Fries Total SEES: Saga; :| in revenues |:| X Data table PRODUCT SALES PRICE VARIABLE COSTS SALES VOLUME Hamburgers $ 1.10 $ 0.60 20,000 Chicken sandwiches 1.30 0.70 22,000 French fries 0.70 0.30 20,000 Print DoneAllison Guthrie has recently acquired a franchise of a wellknown fastfood restaurant chain. She is considering a special promotion for a week during which hamburger prices would be reduced $0.50 from the regular price of $1 .10 to $0.60. Local advertising expenses for this special promotion will amount to $400. Allison expects the promotion to increase sales of hamburgers by 10% and French fries by 8%, but she expects the sales of chicken sandwiches to decline by 10% (because some customers, who I nburger instead because of its attractive \\ Change in contribution margin with promotion l Incremental costs and profits. Should Allison go ahead with 1 I this decision? Net effect Total sales with promotion | Total sales without promotion )tion on sales'andlprofits.IShould Allison g are relevant In this deCISIOI'I? (Use a . . . ase in rofit with romotion. Variable costs With promotion p p ) Chicken French Variable costs without promotion sandwiches Fries Total | viiIEEE : E Egg :l in revenues |:| Allison Guthrie has recently acquired a franchise of a well-known fast-food restaurant chain. She is considering a special promotion for a week during which hamburger prices would be reduced $0.50 from the regular price of $1 .10 to $0.60. Local advertising expenses for this special promotion will amount to $400. Allison expects the promotion to increase sales of hamburgers by 10% and French fries by 8%, but she expects the sales of chicken sandwiches to decline by 10% (because some customers, who othenNise may have ordered a chicken sandwich, will order a hamburger instead because of its attractive low price). The following data have been compiled for sales prices, variable costs, and weekly sales volumes: @ (Click the icon to view the data.) Requirement Evaluate the expected impact of the special promotion on sales and profits. Should Allison go ahead with this special promotion? What other considerations are relevant in this decision? Requirement Evaluate the expected impact of the special promotion on sales and profits. Should Allison go ahead with this special promotion? What other considerations are relevant in this decision? (Use a parentheses or a minus sign to show decreases and a net decrease in profit with promotion.) Chicken French Hamburgers sandwiches Fries Total :::: ;;;; lVI in revenues :| Net decrease Net increase