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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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