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Ron's Ramen plans a weekend discount on miso ramen, reducing the price from $10.00 to $8.00. Promotion costs $1200. Ron expects miso ramen sales to

Ron's Ramen plans a weekend discount on miso ramen, reducing the price from $10.00 to $8.00. Promotion costs $1200. Ron expects miso ramen sales to increase by 35%, with a 10% decline in shoyu ramen sales. Weekly data are:

Product

Sales Price

Variable Costs

Sales Volume

Miso Ramen

$10.00

$5.00

300

Shoyu Ramen

$9.00

$4.50

400

Requirement: Determine the impact on sales and profitability.

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