Question
a.Consider the restaurant Pepperoni Passion, which sells only pepperoni pizza. The expenses for the restaurant are shown below. Monthly Fixed Costs Per Pizza Variable Costs
a.Consider the restaurant Pepperoni Passion, which sells only pepperoni pizza. The expenses for the restaurant are shown below. Monthly Fixed Costs Per Pizza Variable Costs General Labor $1,700 Rent $2,700 Insurance $300 Advertising $400 Utilities $525 Flour $0.75 Yeast $0.10 Water $0.05 Cheese $2.75 Pepperoni $1.50
b. If Pepperoni Passion prices its pizzas at $12 each, how many pizzas must it sell per month to break even? Round your answer to the nearest whole number. Annual fixed costs for a product are $75,000. The product itself sells for $6 and it costs $2 in variable costs to make each product. By how many units will the annual break-even point for the product change if the variable cost per unit goes up to $2.50?
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