Rachel's Ramen plans a two-week special where the price of tonkotsu ramen drops from $12.00 to...
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Rachel's Ramen plans a two-week special where the price of tonkotsu ramen drops from $12.00 to $10.00. Advertising costs $1500. Rachel expects tonkotsu ramen sales to increase by 30%, but expects a 10% decline in shio ramen sales. The weekly figures are:
Product | Sales Price | Variable Costs | Sales Volume |
Tonkotsu Ramen | $12.00 | $6.00 | 300 |
Shio Ramen | $10.00 | $5.00 | 400 |
Requirement: Determine the impact on sales and profitability.
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