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Jen and Barry's ice cream shop charges $ 1 . 5 for a cone. Variable expenses are $ 0 . 3 2 per cone, and

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Jen and Barry's ice cream shop charges $1.5 for a cone. Variable expenses are $0.32 per cone, and fixed
costs total $2,300 per month. A Valentine's Day promotion is being planned for the second week of February.
During this week, a person buying a cone at the regular price would receive a free cone for a friend. It is
estimated that 775 additional cones would be sold and that 975 cones would be given away. Advertising
costs for the promotion would be $140.
Required:
a. Calculate the effect of the promotion on operating income for the second week of February.
b. Do you think the promotion should occur?
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