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Gary's Grill plans a special where the price of cheeseburgers drops from $8.00 to $6.50 for a week. Promotion costs $1200. Gary expects cheeseburger sales
Gary's Grill plans a special where the price of cheeseburgers drops from $8.00 to $6.50 for a week. Promotion costs $1200. Gary expects cheeseburger sales to increase by 40%, with a 15% decline in chicken sandwich sales. The weekly figures are:
Product | Sales Price | Variable Costs | Sales Volume |
Cheeseburgers | $8.00 | $4.00 | 300 |
Chicken Sandwiches | $7.00 | $3.50 | 400 |
Requirement: Determine the impact on sales and profitability.
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