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1. SwiftyShop is a gas station that sells 3 types of fuel: Regular Unleaded, Diesel, and Ethanol. The sales mix among the 3 fuel types
1. SwiftyShop is a gas station that sells 3 types of fuel: Regular Unleaded, Diesel, and Ethanol. The sales mix among the 3 fuel types remains relatively stable. Swifty Shop recorded the following data for the most recent month: Regular ($2.48/gallon average price): Diesel ($2.39/gallon average price) Ethanol ($1.59/gallon average price): Sold 7,000 gallons, $1.23 cost/gallon Sold 15,000 gallons, $1.59 cost/gallon Sold 3,000 gallons, $1.09 cost/gallon SwiftyShop's fixed expenses are $15,600/month. SwiftyShop's tax rate is 20%. 1. Rounded to the nearest cent, what is the weighted average unit contribution margin? (6 points) 2. If Swifty Shop wants to generate after-tax net income of $14,000 next month, how many gallons of product overall must be sold? (5 points) 3. How many gallons of ethanol will Swifty Shop need to sell as part of this mix? (4 points)
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