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Lily's Ice Cream Parlor is offering a two-week discount on sundaes, reducing the price from $5.00 to $4.00. Advertising costs $400. Lily expects sundae sales

Lily's Ice Cream Parlor is offering a two-week discount on sundaes, reducing the price from $5.00 to $4.00. Advertising costs $400. Lily expects sundae sales to rise by 40%, but a 10% decline in cone sales. Current weekly figures are:

  • Sundaes: Sales Price: $5.00, Variable Costs: $2.50, Sales Volume: 300
  • Cones: Sales Price: $3.00, Variable Costs: $1.50, Sales Volume: 500

Requirement: Analyze the promotion's impact and suggest if it should be launched.

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