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Use the following information to answer questions 5 and 6. You own a business that makes and sells frozen piazza. The expected selling price is
Use the following information to answer questions 5 and 6. You own a business that makes and sells frozen piazza. The expected selling price is $10 per piazza. The projective variable cost is $6 per piazza. Estimated fixed cost per month are $10,000.
5 What is the number of piazzas that must be sold to obtain a monthly profit of $20,000? (show working)
6 If 6000 pizzas are sold in a given month and monthly fixed cost increase by $5,000 per month, what is the overall profit (loss) in that month? (show working)
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