Jen and Barrys ice cream shop charges $1.5 for a cone. Variable expenses are $0.35 per cone, and fixed costs total $2,100 per month. A Valentines 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 600 additional cones would be sold and that 800 cones would be given away. Advertising costs for the promotion would be $160.

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?