2 Smart pizza delivers pizzas to the dormitories and apartments near a major university. The company's annual fixed expenses are 40,000. The sales price of a pizza is $10. and it costs the company$6...


2 Smart pizza delivers pizzas to the dormitories and apartments near a major university. The company's<br>annual fixed expenses are 40,000. The sales price of a pizza is $10. and it costs the company$6 to<br>make and deliver each pizza.<br>Required:<br>1) Using the CM approach, compute the company's break-even point in units(pizza)<br>2) What is the contribution-margin ratio<br>3) Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation<br>4) How many pizzas must the company sell to eam a target operating income of 80,000?<br>

Extracted text: 2 Smart pizza delivers pizzas to the dormitories and apartments near a major university. The company's annual fixed expenses are 40,000. The sales price of a pizza is $10. and it costs the company$6 to make and deliver each pizza. Required: 1) Using the CM approach, compute the company's break-even point in units(pizza) 2) What is the contribution-margin ratio 3) Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation 4) How many pizzas must the company sell to eam a target operating income of 80,000?

Jun 09, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here