Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jackson's Pizza delivers pizzas to residences and apartments near a major state university. The company's annual fixed costs are $50,000. The sales price averages $24,

Jackson's  Pizza delivers pizzas to residences and apartments near a major state university. The company's annual fixed costs are $50,000. The sales price averages $24, and it costs the firm $10 to make and deliver each pizza.


Required:

A. Determine how many pizzas must Jackson sell to break even?
B. Determine many pizzas must the company sell to earn a target profit of $28,000?
C. If budgeted sales total 8,500 pizzas, determine how much is the company's safety margin in dollars?

Step by Step Solution

3.45 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

Solution contribution marginSalesVariable costs 1064 Ans AB... 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

Stats Data And Models

Authors: Richard D. De Veaux, Paul D. Velleman, David E. Bock

4th Edition

321986490, 978-0321989970, 032198997X, 978-0321986498

More Books

Students also viewed these Accounting questions

Question

According to the text, what makes a person successful?

Answered: 1 week ago

Question

Solve this question . Thanks

Answered: 1 week ago