Question 4: Cost-Volume analysis

Pete's Pizzasis a small company that makes gourmet frozen pizzas for supermarkets to sell. Each pizza is sold to a retailer for $6.00. Variable and fixed costs are:

Item Variable cost per pizza Toppings $0.70 Cheese $0.15 Dough $1.85 Handling $0.34 Box $0.76 Selling $0.50 Fixed Cost per annum Overheads $33,000.00 Administration $12,000.00 Pete's Pizzas sold 35,000 frozen pizzas last year