Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How many pizzas would he need to sell per month in order to break-even? How many pizzas would he have to sell if he wanted

How many pizzas would he need to sell per month in order to break-even? How many pizzas would he have to sell if he wanted to make a monthly profit of $500, $1,000 and $2,000? Prepare a Monthly Profit and Loss Budget based on a desired profit of $2,000. Please use a Contribution Margin Format.

Supplies

Cost

Standard per pizza

Pizza Oven

Donated by Jacks Father

Cash Register

$10/month (3 year contract)

Refrigerator and Other appliances

$0 (already included in rented space)

Gluten-Free Pizza Crust

$100 for 50 crusts

1 crust

Organic Sauce

$10.00 for 20 cups

1/2 cup

Organic Cheese Blend

$2.00 for 2 cups

1/2 cup

Assorted Spices

$18.75 for 5 lbs ($0.05/tsp)

1 tsp

Labor

Cost

Standard

Salary - Jack

$250/month

$50/training day

Salary Chef

$2,000/month

Salary 2 Employees

$600 each /month

Marketing

$100/month

$1.00/pizza

Accountant

$150/month

Overhead

Phone

$5/month

Utilities (Electric, Gas, and Water)

$225/month

Rent

$1050/month

Estimated Variable MOH

$2.00/pizza

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

Deadly Audit A Buckeye Barrister Mystery

Authors: David M Selcer

1st Edition

0988194368, 978-0988194366

More Books

Students also viewed these Accounting questions