Ted's Tacos is considering a special discount on fish tacos for a month, reducing the price...
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Accounting
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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