You are thinking of opening a pizza restaurant. The following data is available:

Selling price: $5.75 Variable cost per pizza: $ 2.30 Total monthly fixed costs: $8,400

1) Compute the contribution margin per pizza.

2) How many pizzas will you need to sell to break even?

3) How many pizzas will you need to sell to make $10,000 a month?

4) You believe you can increase your fixed costs to $9,000 by doing some advertising and at the same time decrease your variable cost to $2.10 per pizza. How many pizzas will you need to sell to break even?

5) Again, if you increase your fixed costs to $9,000 by doing some advertising and at the same time decrease your variable cost to $2.10 per pizza. How many pizzas will you need to sell to make $10,000 a month?