Question
ABC Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $50,000. The sales price averages $10,
ABC Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $50,000. The sales price averages $10, and it costs the firm $3 to make and deliver each pizza.
A. How many pizzas must ABC sell to break even?
B. How many pizzas must the company sell to earn a target profit of $55,000?
C. If budgeted sales total 10,000 pizzas, how much is the company's safety margin in dollars?
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, G. Richard Chesley, Ray Carroll
6th Canadian Edition
0070915164, 9780070915169
