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Every Halloween, Peterson s Ice Cream Shop offers a trick - or - treat package of 2 5 coupons for $ 2 0 . The

Every Halloween, Petersons Ice Cream Shop offers a trick-or-treat package of 25 coupons for $20. The coupons are redeemable by children 12 years or under, for a single-scoop cone, with a limit of one coupon per child per visit. Coupon sales average 540 books per year. The printing costs are $67.50. A single-scoop cone of Petersons ice cream normally sells for $2.00. The variable costs of a single-scoop cone are $1.50.
Required
a. Determine the loss if all coupons are redeemed without any other effect on sales.
Note: Round your answer to the nearest whole dollar.
$Answer
b. Assume all coupons will not be redeemed. With regular sales unaffected, determine the coupon redemption rate at which Petersons will break even on the offer.
Note: Round your answer to the nearest full percentage point.
Answer
%
c. Assuming regular sales are not affected and one additional single-scoop cone is sold at the regular price each time a coupon is redeemed, determine the coupon redemption rate at which Petersons will break even on the offer.
Note: Round your answer to the nearest full percentage point.
Answer
%
d. Determine the profit or loss incurred on the offer if the coupon redemption rate is 60% and:
1. One-fourth of the redeemed coupons have no effect on sales.
2. One-fourth of the redeemed coupons result in additional sales of two single-scoop cones.
3. One-fourth of the redeemed coupons result in additional sales of three single-scoop cones.
4. One-fourth of the redeemed coupons come out of regular sales of single-scoop cones
Note: Round your answer to the nearest whole dollar.
$Answer

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