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1)You have a business selling and delivering pizzas to businesses for lunch. You pay $4,000 per month in rent, $320 for utilities, and $2,000 a
1)You have a business selling and delivering pizzas to businesses for lunch. You pay $4,000 per month in rent, $320 for utilities, and $2,000 a month for salaries. You also have delivery cars that cost $1,000 per month. Your variable costs are $8 per pizza for ingredients and $4 per pizza for delivery costs. You sell the pizzas for $20 each. Round up if necessary If the price of cheese goes up and your variable costs go by $3 what is your new break even in pizzas if you increase your price to $21 Round up if necessary
2)Golden Company has a fleet of delivery trucks and has the following | |||||||
Overhead costs per month with the miles driven | |||||||
Miles Driven | Total Costs | ||||||
March | 50,000 | 194,000 | |||||
Aprill | 40,000 | 170,200 | this is the low | ||||
May | 60,000 | 217,600 | |||||
June | 70,000 | 241,000 | |||||
Use the High-Low method to determine the | |||||||
a. Variable Cost per Mile | |||||||
b. Fixed Costs | |||||||
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