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Sam and Dennys ice cream shop charges $2.50 for a cone. Variable expenses are $0.80 per cone, and fixed costs total $3,200 per month. A
Sam and Dennys ice cream shop charges $2.50 for a cone. Variable expenses are $0.80 per cone, and fixed costs total $3,200 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 750 additional cones would be sold and that 950 cones would be given away. Advertising costs for the promotion would be $350. How much will the operating income increase during the week of the promotion?
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