Course: Strategic pricing decision

Good evening, please your support with this question according to the data of the case:

Case: McDONALD'S: THE HAMBURGER PRICE WARS

https://www.filesharesite.com/files/202107/1626792039McDonalds_Price_Wars-UVA.pdf.html

Question:

1. Let's suppose that when the "Dollar Menu" is launched, "Extra Value Meal" sales drop 25% and that each "Extra Value Meal" that is discontinued is replaced with a "BigNTasty, some potatoes and a drink", from "Value Menu". By what percentage (%) do "Value Menu" sales vary? And the margin (what about the margin)? How comfortable are they with your analysis?

Identify the answers to the 3 internal questions (percentage, margin, analysis) of the general question.