Question
Brandon's Seafood plans a promotional discount on shrimp dishes for two weeks, reducing the price from $15.00 to $12.50. Marketing expenses are $1500. Brandon expects
Brandon's Seafood plans a promotional discount on shrimp dishes for two weeks, reducing the price from $15.00 to $12.50. Marketing expenses are $1500. Brandon expects shrimp dish sales to increase by 25%, while fish dish sales may decline by 15%. Weekly figures are:
Product | Sales Price | Variable Costs | Sales Volume |
Shrimp dishes | $15.00 | $7.50 | 300 |
Fish dishes | $12.00 | $6.00 | 200 |
Requirement: Determine the expected impact on sales and profitability and recommend whether Brandon should proceed.
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th edition
130565353X, 978-1305887510, 1305887514, 978-1305653535
