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Claire's Cakes is considering a special discount on cupcakes for a week, reducing the price from $2.50 to $2.00. Promotion costs $600. Claire expects cupcake
Claire's Cakes is considering a special discount on cupcakes for a week, reducing the price from $2.50 to $2.00. Promotion costs $600. Claire expects cupcake sales to increase by 25%, with a 10% drop in cookie sales. The weekly data are:
Product | Sales Price | Variable Costs | Sales Volume |
Cupcakes | $2.50 | $1.25 | 1000 |
Cookies | $1.50 | $0.75 | 800 |
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