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

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8E
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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
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