Exercise 7-24 Pizza Delivery Business; Basic CVP Analysis (LO 7-1, 7-2, 7-4) College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company's annual fixed expenses are $51,000. The sales price of a pizza is $10, and it costs the company $4 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 plzzas must the company sell to earn a target profit of $57,000 ? Use the equation method. Exercise 7-25 Manufacturing; Using CVP Analysis (LO 7-1, 7-4) Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm's fixed costs are 3,800,000 p per year. The variable cost of each component is 1,100p, and the components are sold for 3,800p each. The company sold 5,400 components during the prior year. (p denotes the peso, Argentina's national currency. Several countries use the peso as their monetary unit. On the day this exercise was written, Argentina's peso was worth 0.104 U.S. dollar. In the following requirements, ignore income taxes) Required: 1. Compute the break-even point in units. (Round your answer to the nearest whole number.) 2. What will the new break-even point be if fixed costs increase by 10 percent? (Round your answer to the nearest whole number.) 3. What was the company's net income for the prior year? 4. The sales manager believes that a reduction in the sales price to 3,300 will result in orders for 1,000 more components each year. What will the break-even point be if the price is changed? (Round your answer to the nearest whole number.) 5. Should the price change discussed in requirement 4 be made