Question
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?
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