Based on the following information, what is the contribution margin ratio for Scrapyard Pizza? Pizzas sold during the period 80,000   Selling price per pizza $14.00   Variable cost per pizza:   Production $6.00     Selling & administrative 3.00   Fixed Costs:   Production $100,000 per year   Selling & administrative 20,000 per year

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
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Problem 14E: A company has prepared the following statistics regarding its production and sales at different...
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Based on the following information, what is the contribution margin ratio for Scrapyard Pizza?

Pizzas sold during the period 80,000  
Selling price per pizza $14.00  
Variable cost per pizza:
  Production $6.00  
  Selling & administrative 3.00  
Fixed Costs:
  Production $100,000 per year
  Selling & administrative 20,000 per year

 

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