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    Special promotion- expects of a 1 cent sale.

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    The management of Rocko's Pizzeria is considering a special promotion for the last two weeks of October, which is normally a 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 $ 12.99 and has variable expenses of $4.50. Expected sales volume without the special promotion is 600 medium pizzas per week.

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    https://brainmass.com/business/accounting/special-promotion-exxects-of-a-1-cent-sale-240844

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    The management of Rocko's Pizzeria is considering a special promotion for
    the last two weeks of October, which is normally a 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 $ 12.99 and has
    variable expenses of $4.50. Expected sales volume without the special
    promotion is 600 medium pizzas per week.

    a) Calculate the total contribution margin generated by the normal
    volume of medium pizzas in a week
    Selling Price = $12.99
    Variable Expenses = $4.50 ...

    Solution Summary

    The solution examines a special promotion for a 1 cent sale. The expected sales value without the special promotion is given.

    $2.19

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