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Charlie's Chocolates plans a special discount on chocolate bars for a week, reducing the price from $2.00 to $1.50. Advertising costs $500. Charlie expects chocolate

Charlie's Chocolates plans a special discount on chocolate bars for a week, reducing the price from $2.00 to $1.50. Advertising costs $500. Charlie expects chocolate bar sales to increase by 35%, with a 10% decline in truffle sales. The weekly figures are:

Product

Sales Price

Variable Costs

Sales Volume

Chocolate Bars

$2.00

$1.00

1000

Truffles

$3.00

$1.50

600

Requirement: Determine the impact on sales and profitability.

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