Pete's Power Pizzas sells a chocolate/tofu filled pastry. Pete's currently sells this pastry for $13.15, and...

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Pete's Power Pizzas sells a chocolate/tofu filled pastry. Pete'scurrently sells this pastry for $13.15, and makes it for a variablecost of $5.35 per pie. A drop in cocoa prices will reduce variablecost for this product by $0.52 per pie. Pete's is thinking ofreducing the pie's selling price by $0.94. By what percent mustQuantity demanded increase so that Pete's just maintains itscurrent total contribution margin (margin per unit times unitssold)? (Report your answer as a percent. Report 25.5%, for example,as \"25.5\". Rounding: tenth of a percent.) The answer is 5.7. Pleaseshow all work to get to the answer of 5.7.

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Answer So Margin is the difference between Selling price and Cost price Since fixed cost is the same for both cases we can take it out of the equation So SP1 1315Selling price in the first case See Answer

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