Jen and Barry's ice cream shop charges $1.4 for a cone. Variable expenses are $0.34...
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Jen and Barry's ice cream shop charges $1.4 for a cone. Variable expenses are $0.34 per cone, and fixed costs total $2,100 per month. A Valentine's Day promotion is being planned for the second week of February. During this week, a person buying a cone of the reguiar price would receive a free cone for a friend. It is estimated that 700 additional cones would be sold and that 900 cones would. be given away. Advertising costs for the promotion would be $140. Required: a. Caiculate the effect of the promotion on operating income for the second week of February. b. Do you think the promotion should occur? Complete this question by entering your answers in the tabs below. Calculate the effect of the promotion on operating income for the second week of February. Note: Do not round intermediate calculation and round your final answer to 2 decimal places. Jen and Barry's ice cream shop charges $1,4 for a cone. Variable expenses are $0,34 per cone, and fixed costs total $2,100 per month. A Valentine's Day promotion is being planned for the second week of February. Ourting this week, a person buying o cone at the regular price would recelve of free cone for a friend, it is estimated that 700 additional cones would be sold and that 900 cones would be given away. Advertising costs for the promotion would be $140. Required: a. Calculate the effect of the promotion on operating income for the second week of February b. Do you think the promotion should occur? Complete this question by entering vour answers in the tabs below. Calculate the effect of the promotion on operating incorne for the second week of February. Note: Do not round intermediate calculation and round your final answer to 2 decimal places
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