Answer:
Effect on income= $90 increase
Explanation:
Giving the following information:
Costs of meals produced= 4.30
The fixed costs included in this income statement are $3,380
Special offer= $3.30 per meal for 300 meals on April 10.
First, we need to calculate the unitary fixed costs and deduct them from the total unitary cost.
Unitary fixed costs= 3,380/2,600= $1.3
Unitary variable cost= 4.3 - 1.3= 3
Now, we can calculate the effect on income:
Effect on income= 300*(3.3 - 3)
Effect on income= $90 increase