Question
Nina's Nibbles is considering a month-long discount on snack bars, reducing the price from $2.00 to $1.50. Promotion costs $1000. Nina expects snack bar sales
Nina's Nibbles is considering a month-long discount on snack bars, reducing the price from $2.00 to $1.50. Promotion costs $1000. Nina expects snack bar sales to increase by 30%, with a 10% decline in trail mix sales. Weekly data are:
Product | Sales Price | Variable Costs | Sales Volume |
Snack Bars | $2.00 | $1.00 | 600 |
Trail Mix | $3.00 | $1.50 | 400 |
Requirement: Determine the impact on sales and profitability.
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
