Classify costs as variable costs, fixed costs, or mixed costs

Compute the contribution margin, the contribution margin ratio, and the unit contribution margin

Determine the break-even point and sales necessary to achieve a target profit

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You are selling pepperoni pizzas. This is your only product. You have the following costs:

Fixed Costs		Variable Costs per Pizza
General Labor	$1,500	Flour	$0.50
Rent	$3,000	Yeast	$0.05
Insurance	$200	Water	$0.01
Advertising	$500	Cheese	$3.00
Utilities	$450	Pepperoni	$2.00
Total	$5,650	Total	$5.56

What is the minimum price you should charge for the pizza and why?

If you set your pizza sales price to be $10, what is your contribution margin?

Calculate the break-even sales units and break-even sales dollars

Describe at least THREE ways to INCREASE profit (talking in terms of break-even)