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Hank's Hamburgers plans a promotional discount on cheeseburgers for two weeks, reducing the price from $5.00 to $4.00. Advertising costs $1500. Hank expects cheeseburger sales
Hank's Hamburgers plans a promotional discount on cheeseburgers for two weeks, reducing the price from $5.00 to $4.00. Advertising costs $1500. Hank expects cheeseburger sales to increase by 30%, while hotdog sales may decline by 15%. Weekly data are:
- Cheeseburgers: Sales Price: $5.00, Variable Costs: $2.50, Sales Volume: 600
- Hotdogs: Sales Price: $3.50, Variable Costs: $1.75, Sales Volume: 700
Requirement: Assess the financial impact and advise if Hank should proceed.
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