Question
Pats Pizzeria produces three types of deli style pizzas: Thin Crust, Deep Dish, and Stuffed Crust. Pats anticipated sales mix is 7:5:4 Thin:Deep:Stuffed. Current sales
Pats Pizzeria produces three types of deli style pizzas: Thin Crust, Deep Dish, and Stuffed Crust. Pats anticipated sales mix is 7:5:4 Thin:Deep:Stuffed. Current sales are 1,500 bundles per year. Round all interim answers to 4 decimal places.
Thin CrustDeep DishStuffed CrustUnit Selling Price$13$18$15Unit Variable Cost$5$9$7Fixed costs are estimated at $50,000, which include $44,000 for general overhead, such as rent, utilities, etc., and $6,000 for advertising. Pats tax rate is 25%.
In analyzing results at the end of the year, Pat discovered that, although she sold 24,000 pizzas as planned, the actual sales mix was 6 Thin Crust, 6 Deep Dish, and 4 Stuffed Crust pizzas. How did Pats actual profit differ from her projected profit? Explain why this happened.
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