Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part A is correct. Just need help with part b The management of Rocko's Pizzeria is considering a special promotion for the last two weeks

image text in transcribed

Part A is correct. Just need help with part b

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 $9.99 and has variable expenses of $2.6. Expected sales volume without the special promotion is 444 medium pizzas per week. Required: a. Calculate the total contribution margin generated by the normal volume of medium pizzas in a week. (Do not round intermediate calculations.) Contribution margin $ 3,281 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. (Do not round intermediate calculations.) Total number of pizzas

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing The Art And Science Of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser-Hogeterp

11th Edition

0132088061, 978-0132088060

More Books

Students also viewed these Accounting questions

Question

Describe how we perceive depth in three-dimensional space.

Answered: 1 week ago

Question

Explain the development of human resource management (HRM)

Answered: 1 week ago