Tracy's Tacos plans a weekend discount on chicken tacos, reducing the price from $3.50 to $2.50....
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Tracy's Tacos plans a weekend discount on chicken tacos, reducing the price from $3.50 to $2.50. Promotion costs $800. Tracy expects chicken taco sales to increase by 35%, with a 15% decline in fish taco sales. Weekly data are:
Product | Sales Price | Variable Costs | Sales Volume |
Chicken Tacos | $3.50 | $1.75 | 500 |
Fish Tacos | $4.00 | $2.00 | 400 |
Requirement: Determine the impact on sales and profitability.
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