Pam and lenny’s ice cream shop charges $1.25 for a cone. variable expenses are $0.35 per cone, and fixed costs total $1,800 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 400 additional cones would be sold and that 600 cones would be given away. advertising costs for the promotion would be $120.calculate the effect of the promotion on operating income for the second week of february. (do not round intermediate calculations.)net increase in op inc. = it is not 170

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?