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Pam and Lenny's ice cream shop charges $1.35 for a cone Variable expenses are $0.27 per cone, and fixed costs total $2,100 per month. A
Pam and Lenny's ice cream shop charges $1.35 for a cone Variable expenses are $0.27 per cone, and fixed costs total $2,100 per month. A "sweetheart" promotion is being planned for the second week of February. During this week, a person buying a cone at the regular price would receive a free cone for a friend. It is estimated that 600 additional cones would be sold and that 800 cones would be given away. Advertising costs for the promotion would be $125. Required: a. Calculate the effect of the promotion on operating income for the second week of February (Do not round intermediate calculation and round your final answer to 2 decimal places.) Net in operating income
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