Jen and Barry's ice cream shop charges $$1\mathrm{.}4$ for a cone. Variable expenses are $$0\mathrm{.}22$ per cone, and fixed costs total $$2,000$ per month. A Valentine's Day promotion is being planned for the second week of February. During this week, a person buying a cone at the regular price would receive a free cone for a friend. It is estimated that $725$ additional cones would be sold and that $925$ cones would be given away. Advertising costs for the promotion would be $$135.$

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?

Complete this question by entering your answers in the tabs below.

Required A Required B

Calculate the effect of the promotion on operating income for the second week of February.

Note: Do not round intermediate calculation and round your final answer to $2$ decimal places.

Net

in operating income

Required B

Required $A$

Required B

Do you think the promotion should occur?

PIC.COLLAGE