Answered step by step
Verified Expert Solution
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 ow-demand period. The
The management of Rocko's Pizzeria is considering a special promotion for the last two weeks of May, which is normally a relatively ow-demand period. The special promotion would involve selling two medium pizzas for the price of one, plus 1 cent. The medium bizza normally sells for $9.99 and has variable expenses of $2.6. Expected sales volume without the special promotion is 385 medium bizzas per week. Required: a. Calculate the total contribution margin generated by the normal volume of medium pizzas in a week. 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. 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started