Answer:
Pam and Lenny's Ice Cream Shop
a. The effect of the promotion on operating income for the second week of February is an increase by $350.
b. The promotion should occur. The shop will make additional operating income of $350 within the second week. And there will be spillover positive effects during the coming weeks after the promotion.
Explanation:
a) Data and Calculations:
Selling price per cone of ice cream = $1.60
Variable expenses = $0.35
Contribution = $1.25
Fixed costs per month = $2,200
Additional sales from the promotion = 650 cones
Revenue from additional sales = $1,040.00 ($1.60 * 650)
Variable cost 227.50 ($0.35 * 650)
Cost of promotions:
Giveaways 297.50 ($0.35 * 850)
Advertising costs 165.00
Total costs $690.00
Additional income $350.00
Answer:
$90,000
Explanation:
Data given in the question
Selling price = $1,800
Estimated percentage = 2%
Average cost = $150
Number of printers sold = 30,000
Under the warranty, the printer under service = 400
So by considering the above information, the warranty expense is
= Number of printers sold × estimated percentage × average cost per printer
= 30,000 × 2% × $150
= $90,000
Advertising keeps consumers informed about new products in the market at their disposal.
Hello!
You forgot the alternatives!
incentives
<span>margin </span>
<span>markets </span>
<span>scarcity
</span>
The term that is most closely related to trade-off, from the list above, is: scarcity. Scarcity is the condition that moves the trade-offs, it determines the quantity of each product you need or have. So, for example, if you need a product that you don't have enough and another that you have in excess, you can exchange it with someone that have interest in your product and has the one that you need.
Hugs!
That would be true so you make sure you have all the correct info to put on the application
