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Surfer Boy Pizza sells Pineapple Jalapeo pizzas at a unit selling price of $18 has unit variable costs of $6.50 per pizza, and has total

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Surfer Boy Pizza sells Pineapple Jalapeo pizzas at a unit selling price of $18 has unit variable costs of $6.50 per pizza, and has total fixed costs per month of $14,000. Required (you may summarize your answers in this space and submit your calculations and support on your scratch papers): 1. [3 points] What will the monthly break-even point in units for Surfer Boy Pizza? 2. [1 point] What would be the impact on Surfer Boy Pizza's operating income when it sales one more Pinapple Jalapeo pizza above breakeven point. 3. [3 points] How many units would Surfer Boy have to sale to make an after tax profit (i.e.. net income) of $7.000? Assume a 15% tax rate. 4. [2 point] Given the level of sales that you calculated above, what would be Surfer Boy margin of safety i sales dollars? 5. [3 points] Briefly explain why it is important for Surfer Boy to know the business Margin of Safety, Operating Leverage (you don't need to calculate DOL) and Break-even point. Surfer Boy Pizza sells Pineapple Jalapeo pizzas at a unit selling price of $18 has unit variable costs of $6.50 per pizza, and has total fixed costs per month of $14,000. Required (you may summarize your answers in this space and submit your calculations and support on your scratch papers): 1. [3 points] What will the monthly break-even point in units for Surfer Boy Pizza? 2. [1 point] What would be the impact on Surfer Boy Pizza's operating income when it sales one more Pinapple Jalapeo pizza above breakeven point. 3. [3 points] How many units would Surfer Boy have to sale to make an after tax profit (i.e.. net income) of $7.000? Assume a 15% tax rate. 4. [2 point] Given the level of sales that you calculated above, what would be Surfer Boy margin of safety i sales dollars? 5. [3 points] Briefly explain why it is important for Surfer Boy to know the business Margin of Safety, Operating Leverage (you don't need to calculate DOL) and Break-even point

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