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Pies Galore Ltd makes two types of meat pies: Spicy Chicken pies (selling for $9 each) and Curry Lamb pies (selling for $14 each).
Pies Galore Ltd makes two types of meat pies: Spicy Chicken pies (selling for $9 each) and Curry Lamb pies (selling for $14 each). The marketing department has predicted that Pies Galore can sell 650,000 pies during the coming year, with sales mix of the pies will be 45.0% for Spicy Chicken pies and 55.0% for Curry Lamb pies. The accountant has prepared the following projected income statement based on the sales forecast. Spicy Chicken Curry Lamb Total $2632500.0 $5005000.0 $7637500.0 Sales revenue $1170000.0 $2502500.0 $3672500.0 Less total variable costs $1462500.0 $2502500.0 $3965000.0 Total Contribution margin Less fixed costs Profit before tax $760000.0 $3205000.0 Part 1: Calculate variable cost per unit for Pies Galore's two product lines: Spicy Chicken and Curry Lamb (2 marks) Spicy Chicken Pies - variable cost per unit: $
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