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Question 1 (7 marks, 20-35 minutes) Hgyoku Tamukeyama owns and operates a successful dry cleaning business in Brandon, Manitoba. Summary fnancial data for a typical
Question 1 (7 marks, 20-35 minutes) Hgyoku Tamukeyama owns and operates a successful dry cleaning business in Brandon, Manitoba. Summary fnancial data for a typical month of operations are as follows: $30,000 12,000 Revenue Variable costs (40% of uc Contribution margirn Fixed costs Profit $18,000 10,000 $8,000 Because it is the end o winter. Hgyoku s considering running a special promotion on parkas, comforters, and other winter items. During the month-long promotion log oku plans to reduce the charge for cleaning cach of these bulky winter items from $9 to $0. Hgyoku plans to spend $1,000 advertising the promotion in various media, and she expects the promotion to increase the coming month's sales by 1,500 winter items Hgyoku's avcrage monthly revenue on winter items during a typical month amounts to $4,500 Required: By how much will Hgyoku's profit increase or decrease in the coming month if she runs the promotion
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