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What is ice cream company anticipated operating income

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Reference no: EM133126389

Question - In August of year one ice cream company sold 2,000 ice creams with a retail price of $14 and variable costs of $6 per ice cream. The total fixed costs for the month were $11,000.

Ice Cream Company is considering a promotion for the next month, July where all customers would receive 5% off ice cream for the month. In September, marketing expense which is not directly based on ice cream sold would increase by $500 due to promotional costs. Ice Cream Company is expecting to sell 2534 ice creams in September with the new promotion.

What is Ice Cream Company anticipated operating income for September year 1 with the promotion?

Reference no: EM133126389

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