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6 8 9 10 11 12 13 14 15 16 (Cost-Volume-Profit) Set up CVP income statement and show work here You have a business selling

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6 8 9 10 11 12 13 14 15 16 (Cost-Volume-Profit) Set up CVP income statement and show work here 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 Total Per Unit for salaries. You also have delivery cars that cost $1,000 per month. Revenue Your variable costs are $8 per pizza for ingredients and $4 per pizza for delivery costs. Variable Cost You sell the pizzas for $20 each. Round up if necessary Contribution Margin Fixed Cost Net Income What is the number of pizzas you need to sell to break even for the month - 18 19 If you want to make a profit of 2,000 per month, how many pizzas do you need to sell? Round up if necessary 25 26 Go back to the original numbers 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 Golden Company has a fleet of delivery trucks and has the following Overhead costs per month with the miles driven Miles Driven March 50,000 Aprill 40,000 May 60,000 June 70,000 Use the High-Low method to determine the a. Variable Cost per Mile b. Fixed Costs Total Costs 194,000 170,200 this is the low 217,600 241,000 40 41 42 43

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