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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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