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Lenny runs a cake store that sells only one type of cake with a variable cost per unit of $5. Current sales are 3,000 cakes
Lenny runs a cake store that sells only one type of cake with a variable cost per unit of $5. Current sales are 3,000 cakes per week at $15 per cake. A price promotion that cuts price to 75% of the current level is being considered. Please answer the following questions:
Lenny checks and finds that 30% of cake customers also buy a coffee (the rest do not buy anything else). Lenny makes a dollar contribution from each coffee. If we take account of both cake and coffee sales what was Lenny's Total Contribution before any price promotion was run
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