Wendy's Waffles is considering a promotional discount on Belgian waffles for a week, reducing the price...
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Wendy's Waffles is considering a promotional discount on Belgian waffles for a week, reducing the price from $5.00 to $4.00. Advertising costs $700. Wendy expects Belgian waffle sales to increase by 35%, with a 10% decline in pancake sales. The weekly figures are:
Product | Sales Price | Variable Costs | Sales Volume |
Belgian Waffles | $5.00 | $2.50 | 400 |
Pancakes | $4.00 | $2.00 | 500 |
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