Question
Ella's Eatery is considering a week-long discount on quinoa bowls, reducing the price from $8.00 to $6.50. Promotion costs $1000. Ella expects quinoa bowl sales
Ella's Eatery is considering a week-long discount on quinoa bowls, reducing the price from $8.00 to $6.50. Promotion costs $1000. Ella expects quinoa bowl sales to increase by 40%, with a 15% decline in soup sales. Weekly data are:
Product | Sales Price | Variable Costs | Sales Volume |
Quinoa Bowls | $8.00 | $4.00 | 300 |
Soup | $5.00 | $2.50 | 400 |
Requirement: Evaluate the impact on sales and profitability.
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
