Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Priya's Pizza is a new pizza restaurant located steps away from TRU. Priya's Pizza sells three items: Pizza, Pasta and Calzones. Information relating to next

Priya's Pizza is a new pizza restaurant located steps away from TRU. Priya's Pizza sells three items: Pizza, Pasta and Calzones. Information relating to next month's budget for the three menu items is as follows: Expected Sales Sales Price Variable Cost Pizza 2,000 20 $ 5 Pasta 1,750 $ 15 $ 10 Calzones 1,250 $ 10 $ 5 The company has a monthly fixed costs of $15,000 and a tax rate of 25%. Required: a.) Compute the company's expected profit (net income) for the upcoming fiscal period. b.) Compute the company's sales mix. c.) Assuming a consistent sales mix, how many units of each product type must the company sell to break even? Round to the nearest unit. d.) Assuming a consistent sales mix, if the company wishes to earn net income of $30,000, how many units of each product type must be sold? Round to the nearest unit.

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

ISE Fundamentals Of Cost Accounting

Authors: William N. Lanen, Shannon Anderson, Michael W. Maher

7th Edition

1265117705, 9781265117702

More Books

Students also viewed these Accounting questions

Question

OUTCOME 3 Describe pay equity and strategies for implementing it.

Answered: 1 week ago