1.At XYZ Restaurant, which sells only pepperoni pizza ($10/pizza), the expenses per pizza are:

Fixed Costs

General Labor

$1,500

Rent

$3,000

Insurance

$200

Advertising

$500

Utilities

$450

Total

$5,650

Variable Costs

Flour

$0.50

Yeast

$0.05

Water

$0.01

Cheese

$3.00

Pepperoni

$2.00

Total

$5.56

a)Find a break-even point.

b)What kind of profit corresponds to demand of 5000 sold units?

c)With a demand of 4000 units, what price per pizza should be charged in order to break even?