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Sam and Denny's ice cream shop charges $1.65 for a cone. Variable expenses are $0.35 per cone, and fixed costs total $2,400 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 775 additional cones would be sold and that 975 cones would be given away. Advertising costs for the promotion would be $130. Calculate the effect of the promotion on operating income for the second week of February. (Round your answer to 2 decimal places.
A traveling salesperson who solicits and transmits to the principal orders for merchandise for resale is considered an employee under FUTA.
The two questions listed below are from the 15 edition, Wilson. Accounting for government and nonprofit entities.
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