John Martin owns a small caf and plans to introduce a discount offer for a week. He proposes a reduction in coffee prices from $2.50

John Martin owns a small café and plans to introduce a discount offer for a week. He proposes a reduction in coffee prices from $2.50 to $2.00. Advertising for this promotion will cost $600. John expects coffee sales to increase by 15% and muffin sales to increase by 10%, but expects tea sales to decline by 5%. Weekly data for the products are:

Product	Sales Price	Variable Costs	Sales Volume
Coffee	$2.50	$1.00	5000
Muffins	$1.50	$0.75	3000
Tea	$1.20	$0.60	4000

Requirement: Evaluate the impact of the promotion on sales and profits. Should John proceed with the promotion?