rverdell
Apr 11, 2011, 04:36 PM
Pizza Pizazz is a local restaurant. Price and cost information follows:
Price per pizza $ 13.91
Variable cost per pizza
Ingredients 2.18
Direct labor 1.12
Overhead (box, etc.) 0.25
Fixed cost per month $ 4,040.40
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1.
Determine Pizza Pizazz's break-even point in units and sales dollars. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number. Omit the "$" sign in your response.)
Break-even units pizzas
Break-even sales dollars $
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2.Determine the restaurant's margin of safety if it currently sells 450 pizzas per month. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number. Omit the "$" sign in your response.)
Margin of safety $
3.Determine the number of pizzas that Pizazz must sell to generate $1,500 in profit. (Round your intermediate calculations to 2 decimal places and final answer up to next whole number.)
Target sales units
Price per pizza $ 13.91
Variable cost per pizza
Ingredients 2.18
Direct labor 1.12
Overhead (box, etc.) 0.25
Fixed cost per month $ 4,040.40
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1.
Determine Pizza Pizazz's break-even point in units and sales dollars. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number. Omit the "$" sign in your response.)
Break-even units pizzas
Break-even sales dollars $
--------------------------------------------------------------------------------
2.Determine the restaurant's margin of safety if it currently sells 450 pizzas per month. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number. Omit the "$" sign in your response.)
Margin of safety $
3.Determine the number of pizzas that Pizazz must sell to generate $1,500 in profit. (Round your intermediate calculations to 2 decimal places and final answer up to next whole number.)
Target sales units