Ted's Tacos is considering a special discount on fish tacos for a month, reducing the price...
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Ted's Tacos is considering a special discount on fish tacos for a month, reducing the price from $4.00 to $3.00. Promotion costs $1200. Ted expects fish taco sales to increase by 35%, with a 10% decline in beef taco sales. Weekly data are:
Product | Sales Price | Variable Costs | Sales Volume |
Fish Tacos | $4.00 | $2.00 | 500 |
Beef Tacos | $5.00 | $2.50 | 400 |
Requirement: Evaluate the impact on sales and profitability.
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