College Pizza delivers pizzas to the dormitories and apartments near a major state university. The companys annual fixed expenses are $58,000. The sales price of a pizza is $10, and it costs the company $2 to make and deliver each pizza. (In the following requirements, ignore income taxes.)

Required:

Using the contribution-margin approach, compute the companys break-even point in units (pizzas).

What is the contribution-margin ratio?

Note: Enter your answer as a decimal.

Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation.

How many pizzas must the company sell to earn a target profit of $64,000? Use the equation method.