H K M N O P Set up CVP Income statement and show work here: Sales Total Per unit A B D E F ! J 5 6 You have a business selling and delivering pizzas to businesses for lunch. 7 You pay $4.000 per month in rent. 320 for utilities, and $2,000 a month 8 for salaries. You also have delivery cars that cost $1,000 per month 9 Your variable casts are $8 per pizza for ingredients and $4 per pizza for delivery costs. 10 You sell the pizzas for $20 each. Round up if necessary 11 12 13 What is the number of pizzas you need to sell to break even for the month 15 CM per unit $20. $12 - $8 16 915 plazas CM ratio = $8/$20 = 4 (40%) 17 Break-even point in unit sales - $7320/38 915 18 19 # you want to make a profit of 2,000 per month, how many plzzas do you 20 need to sell? Round up if necessary 21 22 1,165 pizzas ($7,320+$2,000$8 = 1,165 23 24 25 the price of cheese goes up and your variable costs go by $3 26 what is your new break even point if you increase your price to $22 27 Round up if necessary 28 29 1.220 puzzas $7.320/56 1.220 30 31 Variable Cost Contribution Margin % Fixed Cost Net Income Break even in units Break oven ins