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At Green Grocer , a week-long discount on organic apples will lower the price from $3.50 to $3.00. Advertising costs are $1200. Sales of apples
At Green Grocer, a week-long discount on organic apples will lower the price from $3.50 to $3.00. Advertising costs are $1200. Sales of apples are expected to increase by 40%, but orange sales may decline by 12%. The current weekly figures are:
Product | Sales Price | Variable Costs | Sales Volume |
Apples | $3.50 | $1.50 | 1500 |
Oranges | $2.00 | $1.00 | 2000 |
Requirement: Evaluate the impact on profits and suggest if the promotion should be implemented.
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