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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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