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Maria's Market plans a special promotion reducing the price of organic carrots from $2.00 to $1.50 for a week. Advertising costs $600. Maria expects organic

Maria's Market plans a special promotion reducing the price of organic carrots from $2.00 to $1.50 for a week. Advertising costs $600. Maria expects organic carrot sales to increase by 35%, but expects a 10% drop in organic potatoes sales. Weekly data are:

Product

Sales Price

Variable Costs

Sales Volume

Organic Carrots

$2.00

$1.00

600

Organic Potatoes

$1.50

$0.75

700

Requirement: Evaluate the impact on sales and profitability.

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