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  • Apr 11, 2011, 04:36 PM
    rverdell
    Accounting
    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


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