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Question 2 (30 Points) BBKing Pizza Company is a wholesale distributor of boxes of pizza. The company services fast food restaurants in a small cities.
Question 2 (30 Points) BBKing Pizza Company is a wholesale distributor of boxes of pizza. The company services fast food restaurants in a small cities. Please prepare your data by using the threshold given for each item. Average selling price Between $45 and 560 Average variable costs: Food production Selling expense Between $20 and $25 Between $5 and 10 Total Annual fixed costs: Selling Administrative Total Between $600,000 and $800,000 Between $200,000 and $300,000 Tax rate 25% Required: a. What is BBKing's break-even point in boxes of pizza for the current year? (10 points) b. What is BBKing's contribution margin percentage in boxes of pizza for the current year? (5 Points) c. Assume variable production costs increase for 20%. What is the new sales price to reach the contribution margin percentage that you calculated in Required b? (10 Points) d. Prepare the income statement for BBKing assuming they sold 1,000,000 boxes of pizza. (5 Points)
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