Leo's Lemonade plans a special promotion reducing the price of lemonade from $2.50 to $2.00 for a week. Advertising costs $300. Leo expects lemonade sales to increase by 40%, but expects a 15% drop in iced tea sales. Weekly data are:

• Lemonade: Sales Price: $2.50, Variable Costs: $1.25, Sales Volume: 1000
• Iced Tea: Sales Price: $2.00, Variable Costs: $1.00, Sales Volume: 800

Requirement: Evaluate the impact on sales and profits.