Question
Elm Street Bakery is considering a buy one get one free special for its muffins. Each muffin has a variable cost of $2 per muffin
Elm Street Bakery is considering a buy one get one free special for its muffins. Each muffin has a variable cost of $2 per muffin and currently sells for a retail price of $6. The fixed costs for the month are $300. Currently, the bakery only sells about 1,000 muffins in January. With the buy one get one free, Elm Street projects it will sell 3,000 muffins next month in February (1500 are sold at full price and 1500 are free).
Assuming no other changes are made except this buy one get one free, what is Elm Street Bakery's projected total operating income for February with the buy one get one free?
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