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What is the operating income for the second week of february

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Question - Pam and Lenny's ice cream shop charges $1.45 for a cone. Variable expenses are $0.28 per cone, and fixed costs total $2,100 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 800 additional cones would be sold and that 1,000 cones would be given away. Advertising costs for the promotion would be $125.

What is the operating income for the second week of February.

Reference no: EM132428820

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