Question: Exercise 1 2 - 1 8 ( Algo ) Special promotion - effects of a 1 - cent sale LO 1 2 - 8 ,
Exercise Algo Special promotioneffects of a cent sale LO
The management of Rocko's Pizzeria is considering a special promotion for the last two weeks of May, which is normally a relatively lowdemand period. The special promotion would involve selling two medium pizzas for the price of one, plus cent. The medium pizza normally sells for $ and has variable expenses of $ Expected sales volume without the special promotion is medium pizzas 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 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.
a Contribution margin
b Total number of pizzas
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