Chapter 9, Problem 4P

Summary Introduction

(a)

To determine:

The level of incremental sales associated with introducing the new pizza.

Incremental sales:

The increase in sale value from the sale of additional quantity is called incremental sales. The incremental sale in excess of the estimated sales of the company. Incremental sales are generated from the sale of an extra quantity of product which increases the sales revenue of the company.

Summary Introduction

(b)

To determine:

Incremental sales associated with introducing the new pizza.