Brackley Co. makes fruit pies. The income statement for last year was at follows:

Brackley Co. Income Statement

Last Year

Sales revenue (3 million pics $3)

Direct materials Direct labour

Production overhead

$1,500,000

Girms margin Selling & distribution expense

Administrative expense

Operating incrime

$1,201,0XX

$3,000,000

Other information on costs is as follows

$1.50X100X

Direct materials and direct labour are 100% variable cost.

Production overhead is 50% variable cost and 50% fixed cost

Selling expense is 75% variable cost and 25% fixed cost.

Administrative expense is all fixed cost.

A) Given the information, calculate the following:

(1) The variable manufacturing cost per pie made

(ii) The total variable cost per pie sold (ii) The full manufacturing cost per pie made

(iv) The full cost per pie sold

(v) The minimum price at which a pie could be sold to cover its

marginal cost

(vi) The minimum price at which a pie could be sold to cover its

full cost.

(B) Assuming no change in sales volume, calculate the price at which pies must be sold to ensure an operating profit of $2,250,000.