P22-6A The contribution margin income statement of Brick Oven Pizza for February 20XX follows: BRICK OVEN PIZZA
Question:
P22-6A The contribution margin income statement of Brick Oven Pizza for February 20XX follows: BRICK OVEN PIZZA Contribution Margin Income Statement For the Month of February 20XX Sales revenue. $185.000 Variable expenses: Cost of goods sold. $32.000 Marketing expense. 25,000 General and administrative expense. 3,000 60.000 Contribution margin. 125.000 Fixed expenses: Marketing expense.... 17.000 General and administrative expense. 10.500 27,500 Operating income $ 97.500 Brick Oven sells three small pizzas for every large pizza. A small pizza sells for $8, with a vari- able expense of $3.75, A large pizza sells for $16. with a variable expense of $6.75. Required 1. Determine Brick Oven's monthly breakeven point in the numbers of small pizzas and large pizzas. Prove your answer by preparing a summary contribution margin income statement at the breakeven level of sales. Show only two categories of expenses: variable and fixed. 2. Compute Brick Oven's margin of safety in dollars. 3. Il Brick Oven can increase monthly sales volume by 15%, what will operating income be?
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Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones