Question
Lucas's Lunches plans a special where the price of falafel wraps drops from $7.00 to $6.00 for a week. Promotion costs $800. Lucas expects falafel
Lucas's Lunches plans a special where the price of falafel wraps drops from $7.00 to $6.00 for a week. Promotion costs $800. Lucas expects falafel wrap sales to increase by 30%, with a 10% drop in salad sales. Weekly data are:
Product | Sales Price | Variable Costs | Sales Volume |
Falafel Wraps | $7.00 | $3.50 | 400 |
Salads | $6.00 | $3.00 | 500 |
Requirement: Assess the impact on sales and profitability.
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Financial Accounting
Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz
11th edition
978-0134065830, 134065832, 134127625, 978-0134127620
