Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Randys Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $72,000. The sales price averages $12,

Randys Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $72,000. The sales price averages $12, and it costs the firm $4 to make and deliver each pizza.

Required:

  1. How many pizzas must Randys sell to break even?
  2. How many pizzas must the company sell to earn a target profit of $80,000?
  3. If budgeted sales total 10,900 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

Recommended Textbook for

The Wall Street Mba

Authors: Reuben Advani

2nd Edition

007178831X, 9780071788311

More Books

Students also viewed these Accounting questions