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Samantha's Diner is launching a week-long special where the price of a sandwich is reduced from $3.00 to $2.50. The promotional campaign will cost $800.

Samantha's Diner is launching a week-long special where the price of a sandwich is reduced from $3.00 to $2.50. The promotional campaign will cost $800. Samantha predicts sandwich sales will increase by 30%, but expects a 15% decrease in drink sales. Weekly figures are:

  • Sandwiches: Sales Price: $3.00, Variable Costs: $1.50, Sales Volume: 2500
  • Drinks: Sales Price: $1.50, Variable Costs: $0.75, Sales Volume: 3000
Requirement: Analyze the impact of the promotion on overall sales and profits.

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