Question
Paul's Pies plans a weekend discount on fruit pies, reducing the price from $5.00 to $4.00. Promotion costs $700. Paul expects pie sales to increase
Paul's Pies plans a weekend discount on fruit pies, reducing the price from $5.00 to $4.00. Promotion costs $700. Paul expects pie sales to increase by 35%, but expects a 10% drop in tart sales. Weekly data are:
Product | Sales Price | Variable Costs | Sales Volume |
Fruit Pies | $5.00 | $2.50 | 500 |
Tarts | $4.00 | $2.00 | 400 |
Requirement: Determine the impact on sales and profits.
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th edition
130565353X, 978-1305887510, 1305887514, 978-1305653535
