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X is under product, variable, fixed, and mixed costs. It is Selling with S or Administrative with A. Determine: The contribution margin per pizza; The

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X is under product, variable, fixed, and mixed costs. It is Selling with S or Administrative with A.

Determine: The contribution margin per pizza; The breakeven sales level (in number of pizzas; The sales level (in number of pizzas) that will generate a profit of $9,000 for next November

Operating Cost Items Sales Levels 4,000 6,000 $1,600 $2,400 Dough 1,000 1,500 Toppings Cheese 1,800 2,700 Tomatoes 1,200 1,800 3,000 Energy* Kitchen personnel 2,500 3,000 3,000 Delivery personnel 880 1,320 Car expenses 2,600 2,900 Facilities 10,000 10,000 Advertising 4,500 4,500 Total Operating costs $29,080 $33,120 * These costs are all related to the kitchen. Although Tony has an office at the store, the costs necessary to run this office are considered negligible (Tony uses this office only a few hours a week). Sales Levels Cost Type Variable Mixed $ $ $ $ X X X Operating Cost Items Dough Toppings Cheese Tomatoes Energy Kitchen personnel Delivery personnel Car expenses Facilities Advertising Total Operating costs X 4,000 1,600 $ 1,000 $ 1,800 $ 1,200 $ 2,500 $ 3,000 $ 880 $ 2,600 $ 10,000 $ 4,500 $ 29,080 $ Cost Type Amounts Per Unit Variable Cost Total Fixed Cost 0.4 0.25 0.45 0.3 0.25 1500 3000 0.22 0.15 | 2000 10000 4500 2. 02 2 1000 6,000 Product Cost Period Cost 2,400 X 1,500 X 2,700 X 1,800 X 3,000 X 3,000 XL L 1,320 S 2,900 AT 10,000 A 4,500 33,120 s T XL Is X L X L $ Operating Cost Items Sales Levels 4,000 6,000 $1,600 $2,400 Dough 1,000 1,500 Toppings Cheese 1,800 2,700 Tomatoes 1,200 1,800 3,000 Energy* Kitchen personnel 2,500 3,000 3,000 Delivery personnel 880 1,320 Car expenses 2,600 2,900 Facilities 10,000 10,000 Advertising 4,500 4,500 Total Operating costs $29,080 $33,120 * These costs are all related to the kitchen. Although Tony has an office at the store, the costs necessary to run this office are considered negligible (Tony uses this office only a few hours a week). Sales Levels Cost Type Variable Mixed $ $ $ $ X X X Operating Cost Items Dough Toppings Cheese Tomatoes Energy Kitchen personnel Delivery personnel Car expenses Facilities Advertising Total Operating costs X 4,000 1,600 $ 1,000 $ 1,800 $ 1,200 $ 2,500 $ 3,000 $ 880 $ 2,600 $ 10,000 $ 4,500 $ 29,080 $ Cost Type Amounts Per Unit Variable Cost Total Fixed Cost 0.4 0.25 0.45 0.3 0.25 1500 3000 0.22 0.15 | 2000 10000 4500 2. 02 2 1000 6,000 Product Cost Period Cost 2,400 X 1,500 X 2,700 X 1,800 X 3,000 X 3,000 XL L 1,320 S 2,900 AT 10,000 A 4,500 33,120 s T XL Is X L X L $

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