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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:
- How many pizzas must Randys sell to break even?
- How many pizzas must the company sell to earn a target profit of $80,000?
- If budgeted sales total 10,900 pizzas, how much is the company's safety margin in dollars?
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