Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company's annual fixed expenses are $57,000. The sales price of

image text in transcribed
image text in transcribed
College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company's annual fixed expenses are $57,000. The sales price of a pizza is $10, and it costs the company $5 to make and deliver each pizza. (in the following requirements, ignore income taxes.) 1. Using the contribution-margin approach, compute the company's break-even point in units (pizzas). Required: 2. What is the contribution-margin ratio? (Round your answer to 1 decimal place.) 3. Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation 4. How many pizzas must the company sell to earn a target profit of $63,000 ? Use the equation method College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company's annual fixed expenses are $57,000. The sales price of a pizza is $10, and it costs the company $5 to make and deliver each pizza. (in the following requirements, ignore income taxes.) 1. Using the contribution-margin approach, compute the company's break-even point in units (pizzas). Required: 2. What is the contribution-margin ratio? (Round your answer to 1 decimal place.) 3. Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation 4. How many pizzas must the company sell to earn a target profit of $63,000 ? Use the equation method

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic Accounting And Financial Statement Fraud Forensic Accounting Performance

Authors: Zabihollah Rezaee

1st Edition

1949991075, 978-1949991079

More Books

Students also viewed these Accounting questions

Question

How would you describe the decision-making process at Graeters?

Answered: 1 week ago

Question

How We Listen?

Answered: 1 week ago