Pam and lenny’s ice cream shop charges $1.25 for a cone. variable expenses are $0.35 per cone, and fixed costs total $1,800 per month. a “sweetheart” promotion is being planned for the second week of february. during this week, a person buying a cone at the regular price would receive a free cone for a friend. it is estimated that 400 additional cones would be sold and that 600 cones would be given away. advertising costs for the promotion would be $120.calculate the effect of the promotion on operating income for the second week of february. (do not round intermediate calculations.)net increase in op inc. = it is not 170
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Pam and lenny’s ice cream shop charges $1.25 for a cone. variable expenses are $0.35 per cone, and f...
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