Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $14.99 and has variable expenses of $2.8. Expected sales volume without the special promotion is 442 medium pizzas per week.
Required:
Calculate the total contribution margin generated by the normal volume of medium pizzas in a week.
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.
Note: For all requirements, do not round intermediate calculations. Round your final answer to the nearest whole dollars.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions