Question
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.
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