Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Randy's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $44,000. The sales price averages $10,

Randy's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $44,000. The sales price averages $10, and it costs the firm $5 to make and deliver each pizza. Required: A. How many pizzas must Randy's sell to break even? B. How many pizzas must the company sell to earn a target profit of $49,000? C. If budgeted sales total 10,700 pizzas, how much is the company's safety margin in dollars? A Break-even pizzas B Pizzas to earn C. Safety margin
image text in transcribed
Randy's Pizza delivers pizzas to dormitories and apartments near a major state university The company's annual fixed costs are $44,000. The sales price averages $10, and it costs the firm $5 to make and deliver each pizza. Required: A. How many pizzas must Randy's sell to break even? B. How many pizzas must the company sell to earn a target profit of $49,000 ? C. If budgeted sales total 10,700 pizzas, how much is the company's safety margin in dollars

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions