What is Pepe's contribution margin % per composite unit? O 75% O 25% O 70% O 33%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Do not give answer in image 

Pepe's Pizza parlor has the following product mix, selling prices, and
variable costs. They have $116,100 in fixed costs.
Product Mix
10
4
5
O 75%
25%
O 70%
Pepe's product profile
Product
33%
Pizza slice
Pepe bread
Soda
What is Pepe's contribution margin % per composite unit?
Sales Price
$5
$3
$2
Variable Cost
$1.50
$0.50
$0.20
Transcribed Image Text:Pepe's Pizza parlor has the following product mix, selling prices, and variable costs. They have $116,100 in fixed costs. Product Mix 10 4 5 O 75% 25% O 70% Pepe's product profile Product 33% Pizza slice Pepe bread Soda What is Pepe's contribution margin % per composite unit? Sales Price $5 $3 $2 Variable Cost $1.50 $0.50 $0.20
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 7 images

Blurred answer
Knowledge Booster
Theory of Constraints (TOC)
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education