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David's Pizzeria is planning a two-week special where the price of a large pizza drops from $12.00 to $10.00. Marketing expenses are $2000. David expects

David's Pizzeria is planning a two-week special where the price of a large pizza drops from $12.00 to $10.00. Marketing expenses are $2000. David expects pizza sales to rise by 20% and pasta sales to fall by 10%. The current weekly figures are:

  • Large Pizza: Sales Price: $12.00, Variable Costs: $6.00, Sales Volume: 1000
  • Pasta: Sales Price: $8.00, Variable Costs: $4.00, Sales Volume: 500

Requirement: Assess the impact on sales and profitability.

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