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Raleigh Pizza delivers pizzas to the dormitories and apartments near a major state university. The companys annual fixed expenses are $52,000. The sales price of

Raleigh Pizza delivers pizzas to the dormitories and apartments near a major state university. The companys annual fixed expenses are $52,000. The sales price of a pizza is $10, and it costs the company $2 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.

4.

How many pizzas must the company sell to earn a target net profit of $58,000? Use the equation method.

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