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Gary's Grill plans a promotional discount on ribeye steaks for a week, reducing the price from $18.00 to $15.00. Advertising costs $1500. Gary expects ribeye
Gary's Grill plans a promotional discount on ribeye steaks for a week, reducing the price from $18.00 to $15.00. Advertising costs $1500. Gary expects ribeye steak sales to increase by 20%, with a 10% decrease in chicken breast sales. Weekly data are:
- Ribeye Steaks: Sales Price: $18.00, Variable Costs: $9.00, Sales Volume: 200
- Chicken Breasts: Sales Price: $10.00, Variable Costs: $5.00, Sales Volume: 300
Requirement: Evaluate the impact on sales and profitability.
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