Question
Use the following information for question 26 and 27 : Edward Cheezers makes and sells frozen pizzas. The expected selling price is $10 per pizza.
Use the following information for question 26 and 27:
Edward Cheezers makes and sells frozen pizzas. The expected selling price is $10 per pizza. The projected variable cost per pizza is $6 and the estimated fixed costs per month are $10,000.
26. What is the number of pizzas that must be sold to obtain a monthly profit of $20,000?
27. Cheezers is able to purchase a machine to process the dough more efficiently which will increase fixed costs by $500 each month. This will reduce variable costs by $.50 per pizza. What number of pizzas must be sold to maintain the monthly profit of $20,000.
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