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need help with this need help with this Description of cost Ingredient cost per pizza Truck fuel cost per delivery Cost of pizza delivery truck
need help with this
need help with this
Description of cost Ingredient cost per pizza Truck fuel cost per delivery Cost of pizza delivery truck (estimated useful life 5 years, no salvage value) Cost of initial software development (estimated useful life 3 years) Annual maintenance/update costs of software Supplies cost per pizza (box, napkins, etc.) Cost to park pizza delivery truck per year (garage facility) Insurance and other regulatory costs per year Cost of cofounders' salaries per year Cost to rent restaurant kitchen facility for testing and food prep (per year) Direct labor cost per pizza (driving truck and preparing pizza in truck) Cost estimate 6.00 3.00 80,000 30,000 25,000 100 24,000 36,000 150,000 45,000 5.00 Questions From the list above, what costs would you classify as variable with respect to the cost of a Alfred pizza? Are there any other variable costs you could envision that Alfred might incur per pizza? Explain. From the list above, what costs would you classify as fixed with respect to the cost of a Alfred pizza? Are there any other fixed costs you could envision that Alfred might incur in its pizza business? Explain. what costs from the list and any costs you thought of for Questions #1 and #2 above would you use to calculate the break even number of pizzas that Alfred Pizza must sell per day? Why did you included these costs? Calculate the break even number of pizzas. Given your answer for the current break even number of pizzas, calculate Alfred's margin of safety in number of pizzas (if any margin of safety exists.) What does this margin of safety meanStep by Step Solution
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