Mark's Market plans a weekend discount on organic avocados, reducing the price from $2.00 to $1.50....
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Accounting
Mark's Market plans a weekend discount on organic avocados, reducing the price from $2.00 to $1.50. Promotion costs $500. Mark expects avocado sales to increase by 50%, but expects a 15% decline in organic tomato sales. Weekly data are:
Product | Sales Price | Variable Costs | Sales Volume |
Organic Avocados | $2.00 | $1.00 | 600 |
Organic Tomatoes | $1.50 | $0.75 | 500 |
Requirement: Analyze the impact on sales and profitability.
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