Tonys is a Pizzeria located near a local university. The restaurant not only sells two types of pizza: Thin Crust and Deep Dish, but also sells Pasta.

Information relating to the three products for the next month follows:

	Thin Crust	Deep Dish	Pasta
Expected sales (units)	1,000	400	200
Sales price	$15	$20	$12
Variable cost	$6	$8	$5

The company has monthly fixed costs of $10,000 and a tax rate of 20%.

Required:

1. Compute the companys expected profit (net income) for the upcoming fiscal period.
2. Compute the companys sales mix. (Note Solve the normal way
3. Assuming a consistent sales mix, how many units of each product type must the company sell to break even?
4. Assuming a consistent sales mix, if the company wishes to earn monthly net income of $25,000, how many units of each product type must be sold?
5. Compute the margin of safety in both dollar and percentage terms.