Maurice Tutor

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Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 16 Feb 2018 My Price 6.00

Rocko’s Pizzeria

Special promotion—effects of a 1-cent sale 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 $3. Expected sales volume without the special promotion is 400 medium pizzas per week.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Required:

a.       Calculate the total contribution margin generated by the normal volume of medi- um 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.

c.       What other factors should management consider in evaluating the pros and cons of the special promotion?

 

 

 

 

 

 

 

 

 

 

 

 

All applicable Problems are available with McGraw-Hill’s Connect™ Accounting.

Answers

Maurice Tutor
(5)
Status NEW Posted 16 Feb 2018 04:02 PM My Price 6.00

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