Answer:
(a) Calculate the total contribution margin generated by the normal volume of medium pizzas in a week.
contribution margin per pizza = $12.99 - $4.50 = $8.49
total contribution margin = $8.49 x 600 = $5,094
(b) Calculate the total number of medium pizzas that would have to be sold during the 1-cent sale to generate the same amount of contribution margin that results from the normal volume.
new contribution margin = ($13 / 2) - $4.50 = $2
in order to have the same contribution margin, they would need to sell $5,094 / $2 = 2,547 pizzas