Nina's Nibbles is considering a month-long discount on snack bars, reducing the price from $2.00 to...
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Accounting
Nina's Nibbles is considering a month-long discount on snack bars, reducing the price from $2.00 to $1.50. Promotion costs $1000. Nina expects snack bar sales to increase by 30%, with a 10% decline in trail mix sales. Weekly data are:
Product | Sales Price | Variable Costs | Sales Volume |
Snack Bars | $2.00 | $1.00 | 600 |
Trail Mix | $3.00 | $1.50 | 400 |
Requirement: Determine the impact on sales and profitability.
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