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4 Exercise 12-18 (Algo) Special promotion-effects of a 1-cent sale LO 12-8, 12-9 25 points Skipped eBook Print References The management of Rocko's Pizzeria
4 Exercise 12-18 (Algo) Special promotion-effects of a 1-cent sale LO 12-8, 12-9 25 points Skipped eBook Print References The management of Rocko's Pizzeria is considering a special promotion for the last two weeks of May, which is normally a relatively low-demand period. The special promotion would involve selling two medium pizzas for the price of one, plus 1 cent. The medium pizza normally sells for $10.99 and has variable expenses of $3. Expected sales volume without the special promotion is 383 medium pizzas per week. Required: a. Calculate the total contribution margin generated by the normal volume of medium pizzas in a week. b. Calculate the total number of medium pizzas that would have to be sold during the 1-cent sale to generate the same amount of contribution margin that results from the normal volume. Note: For all requirements, do not round intermediate calculations. Round your final answer to the nearest whole dollars. a. Contribution margin b. Total number of pizzas Mc Graw Hill < Prev 4 of 4 Next > Check my work
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