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Oscar's Omelettes plans a special where the price of cheese omelettes drops from $7.00 to $5.50 for two weeks. Promotion costs $1500. Oscar expects cheese

Oscar's Omelettes plans a special where the price of cheese omelettes drops from $7.00 to $5.50 for two weeks. Promotion costs $1500. Oscar expects cheese omelette sales to increase by 30%, with a 15% decline in veggie omelette sales. Weekly data are:

Product

Sales Price

Variable Costs

Sales Volume

Cheese Omelettes

$7.00

$3.50

300

Veggie Omelettes

$6.00

$3.00

400

Requirement: Evaluate the impact on sales and profitability.

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