Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Raleigh Pizza delivers pizzas to the dormitories and apartments near a major state university. The companys annual fixed expenses are $50,000. The sales price of
Raleigh Pizza delivers pizzas to the dormitories and apartments near a major state university. The companys annual fixed expenses are $50,000. The sales price of a pizza is $10, and it costs the company $5 to make and deliver each pizza. (In the following requirements, ignore income taxes.) |
Required: |
1. | Using the contribution-margin approach, compute the companys break-even point in units (pizzas) |
2. | What is the contribution-margin ratio? (Round your answer to 1 decimal place.) |
3. | Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started