A.Target Pricing Biggest pizza (20 inch pizza) Company plans to open a factory with a retail store in the front. The investors want a 20% return on investments on the assets of $4,000,000. Fixed costs are expected to be $2,000,000 for the year and they estimate that they will sell 700,000 big pizzas in a year. Variable cost per pizza is $7.22 Editing Voice Sensitivity 1. They are in a very competitive industry and currently competitors charge $11.00 per pizza. Complete the chart Computation ANSWER Revenue Less Desired Profit Target full product Cost Variable costs +Fixed Costs =Total Costs Difference 2. What selling price should Biggest Pizza Company charge? 3. How much is the projected profit or loss? 4. Can they produce the product for the desired cost