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Tony's Tofu plans a special where the price of tofu bowls drops from $9.00 to $7.50 for two weeks. Promotion costs $1200. Tony expects tofu
Tony's Tofu plans a special where the price of tofu bowls drops from $9.00 to $7.50 for two weeks. Promotion costs $1200. Tony expects tofu bowl sales to increase by 35%, but expects a 10% decline in tofu salad sales. The weekly figures are:
Product | Sales Price | Variable Costs | Sales Volume |
Tofu Bowls | $9.00 | $4.50 | 300 |
Tofu Salads | $7.00 | $3.50 | 400 |
Requirement: Evaluate the impact on sales and profitability.
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