Question
Sammy's Subs is considering a week-long discount on Italian subs, reducing the price from $8.00 to $6.50. Promotion costs $1200. Sammy expects Italian sub sales
Sammy's Subs is considering a week-long discount on Italian subs, reducing the price from $8.00 to $6.50. Promotion costs $1200. Sammy expects Italian sub sales to increase by 30%, with a 15% decline in turkey sub sales. Weekly data are:
Product | Sales Price | Variable Costs | Sales Volume |
Italian Subs | $8.00 | $4.00 | 400 |
Turkey Subs | $7.00 | $3.50 | 300 |
Requirement: Evaluate the impact on sales and profitability.
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th edition
130565353X, 978-1305887510, 1305887514, 978-1305653535
