Exercise 12-18 (Algo) Special promotioneffects of a 1-cent sale LO 12-8, 12-9

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 $3.4. Expected sales volume without the special promotion is 399 medium pizzas per week.

Required:

Calculate the total contribution margin generated by the normal volume of medium pizzas in a week.

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.