Managerial Accounting Break-even Homework Row 1. University Pizza delivers pizzas to the dormitories and apartments near a university. The company's annual fixed expenses are $42,000. The sales price of a pizza is $10 and it cost the company $6 to make and deliver each pizza. a. What is the break-even point in units (pizzas)? b. What is the break-even sales revenue? c. How many pizzas must the company sell to earn a target profit of $65,000? 2. Valley Lighting, Ltd. manufactures custom-made, durable, low-voltage yard lighting systems. Each system sells for an average of $435 a unit. Variable costs per unit are $210. Total fixed costs for the year are estimated to be $166,500. a. Compute the break-even in units. b. Management is considering several alternative courses of action for next year. (Treat each alternative independently.) 1. Calculate the number of units that must be sold to generate a profit of $100,000. 2. Calculate the break-even in units if the selling price was cut by $50. 3. Calculate the break-even in units if advertising costs increase by $25,000