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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 trickortreat package of coupons for $ The coupons are redeemable by children years or under, for a singlescoop cone, with a limit of one coupon per child per visit. Coupon sales average books per year. The printing costs are $ A singlescoop cone of Petersons ice cream normally sells for $ The variable costs of a singlescoop cone are $
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.
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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.
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c Assuming regular sales are not affected and one additional singlescoop 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.
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d Determine the profit or loss incurred on the offer if the coupon redemption rate is and:
Onefourth of the redeemed coupons have no effect on sales.
Onefourth of the redeemed coupons result in additional sales of two singlescoop cones.
Onefourth of the redeemed coupons result in additional sales of three singlescoop cones.
Onefourth of the redeemed coupons come out of regular sales of singlescoop cones
Note: Round your answer to the nearest whole dollar.
$Answer
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