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Sales Variable Costs Contribution Margin Fixed Costs EBIT Recommendation Q4. Sam's Pizzeria is a Pizza restaurant in Dekalb County. The average selling price of a
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Q4. Sam's Pizzeria is a Pizza restaurant in Dekalb County. The average selling price of a slice of pizza is $2.50 and the average variable expense per slice is .85 cents. The average fixed expense per month is $2,400. An average of 3,250 slices of pizza are sold each what is the break-even sales in dollars and units? Complete the CVP income statement for both break even and for the current monthly volume. (Hint: Break-even sales = Fixed expenses/CM Ratio) Units 1 SALES 1.85 Contribution Margin Ratio VARIABLE COSTS 0.67 1.18 CONTRIBUTION MARGIN 1.18 1.85 Break Even in Units FC CM# Break Even in Sales Dollars FC CM% CVP Income Statement Current Volume Break Even Units Sales Variable Costs Contribution Margin Fixed Costs EBIT Calculate the margin of Safety https://www.youtube.com/watch?v=WMRuyiu3ITk Actual Sales Break Even Sales Difference margin of safety Difference Actual Sales
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