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Randy's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $32,400. The sales price averages $8,
Randy's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $32,400. The sales price averages $8, and it costs the firm $4 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 $36,400? C. If budgeted sales total 10,000 pizzas, how much is the company's safety margin in dollars? A. Break-even pizzas B. Pizzas to earn C. Safety margin
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