2 CONTRIBUTION MARGIN INCOME STATEMENT Flour Item Chocolate Chips Cost Cost $1/6 pack Baker Labor $1/6 pack Salesperson Labor $.5016 pack Ad in the UDR $.50/6 pack Table for cookie sales: Cannot be Item $.50 /6 pack $.50 /6 pack $75 Butter $50 Traced to Product Product) $300 S0.60 per 6-Pack during Commercial Kitchen Rental Traced Directly to A group of KU students decided to bake and sell monster cookies at Anschutz Librany ufomal rese 6-packs. Expenses incurred by the students are shown in the above table. Based on students, the group estimates that it will el a total of 500 6-packs at a price of $5/6 pack finals week. Cookies are sold in a. What is the product cost for each 6 pack? (SHOW YOUR WORK) 0,50 o.s b. Create a contribution margin Income Statement for the Company based on the Company's sales estimate. (HINT: Product cost is NOT the same thing as variable cost) DESCRIPTION WORK ANSWER c. During the Monday of finals week, the group sellis 200 cookies. Based on these strong sales, the group determines that the price can be raised to $6/6 pack without affecting demand for the remaining 300 packs. The group decides to re-advertise in the UDK with its new sales price for $50. Create a new contnibution margin Income Statement for the Company based on revised estimates. DESCRIPTION WORK