Singles Supremes Contribution Margin per Unit Contribution Margin $ 6 $ 6 $ 6 $ 6 Contribution Margin per Unit Contribution Margin $ 6 $ 6 Total Total $ 720 $ 180 $ 240 a. $ 180 b. $ 720 C. $ 6 $ 360 d. $ 180 $ 6 $ 180 %24 %24 %24 %24 b.

Singles Supremes Contribution Margin per Unit Contribution Margin $ 6 $ 6 $ 6 $ 6 Contribution Margin per Unit Contribution Margin $ 6 $ 6 Total Total $ 720 $ 180 $ 240 a. $ 180 b. $ 720 C. $ 6 $ 360 d. $ 180 $ 6 $ 180 %24 %24 %24 %24 b.

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter20: Variable Costing For Management Analysis

Section: Chapter Questions

Problem 20.18EX

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Question

Sammie’s Pizza sells an average of 150 pizzas per week, of which 20% are single-topping pizzas and 80% are supreme pizzas with multiple toppings. Singles sell for $8 each and incur variable costs of $2. Supremes sell for $12 each and incur variable costs of $6.

The contribution margin per unit and total contribution margin for Singles and Supremes are

Singles
Supremes
Contribution
Margin per Unit Contribution Margin
$ 6
$ 6
$ 6
$ 6
Contribution
Margin per Unit Contribution Margin
$ 6
$ 6
Total
Total
$ 720
$ 180
$ 240
a.
$ 180
b.
$ 720
C.
$ 6
$ 360
d.
$ 180
$ 6
$ 180
%24
%24
%24
%24
b.

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