Pizza Planet Corporation (PPC) is a new business that makes a fruit pizza. The business is seasonal both because of the product and because of the clientele. SFC plans to attend all of the festivals in its local areas and needs to rent a food truck for two months. The rent for the food truck is $1,500 per month. SFC offers customers three different pizza options: 1) Traditional Strawberry, 2) Orange Waffle and 3) Blueberry Twisted. Traditional Waffle $5.00 3.00 750 Sales price per pizza Variable cost per pizza Month sales level in pizzas Keep to 2 decimal places. $4.00 2.00 1,250 a) What is the weighted contribution margin? 2.08 b) Which product should SFC promote more? ◄► Twisted $6.00 3.60 500

Pizza Planet Corporation (PPC) is a new business that makes a fruit pizza. The business is seasonal both because of the product and because of the clientele. SFC plans to attend all of the festivals in its local areas and needs to rent a food truck for two months. The rent for the food truck is $1,500 per month. SFC offers customers three different pizza options: 1) Traditional Strawberry, 2) Orange Waffle and 3) Blueberry Twisted. Traditional Waffle $5.00 3.00 750 Sales price per pizza Variable cost per pizza Month sales level in pizzas Keep to 2 decimal places. $4.00 2.00 1,250 a) What is the weighted contribution margin? 2.08 b) Which product should SFC promote more? ◄► Twisted $6.00 3.60 500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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