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 $53,000. The sales price of

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 $53,000. The sales price of a pizza is $10, and it costs the company $8 to make and deliver each pizza. (In the following requirements, ignore income taxes.) Required: 1. Using the contribution-margin approach, compute the company's break-even point in units (pizzas). 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 $59,000? Use the equation method. 1. Break-even point pizzas 2. Contribution-margin ratio 3. Break-even point sales dollars 4. Number of pizzas

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

Horngrens Cost Accounting A Managerial Emphasis

Authors: Srikant Datar, Madhav Rajan

16th Global Edition

1292211547, 9781292211541

More Books

Students also viewed these Accounting questions