Hello,

I am seeking answer for question 3 both a and b. The information required to solve this problem is given above.

Please help. Thank you!

Chapter 13 Analysis of Short-Term Decisions $9,000,000 Scenario #1 The following information pertains to Problems #3 and #4 Brackley Co makes fruit pies. The income statement for last year follows: Brackley Co. Income Statement Last Year Sales revenue (3 million pies @ $3) Direct materials $1,500,000 Direct labour 1,500,000 Production overhead 3,000,000 Gross margin Selling & distribution expense $1,200,000 Administrative expense 300,000 Operating income 6,000,000 $3,000,000 1,500,000 $1,500,000 Other information on costs is as follows: 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. . 3. (a) Given the information, calculate the following: (i) The variable manufacturing cost per pie made (ii) The total variable cost per pie sold (iii) 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