Reference no: EM132709648
Problem - Five-Star Pizza delivers pizzas to the residential halls and tiniits fear a major university. The company's annual fixed expenses are $40,000. The sales price of a pizza is $16, and it costs the company $8 to make and deliver each pizza.
Required -
1. Calculate the company's break-even point in units (pizzas).
2. What is the contribution margin ratio?
3. Calculate the break-even sales revenue. Use the contribution margin ratio in your calculation.
4. Explain the concept of 'break-even' point and justify your answers in 1 & 3 above, with the calculation using contribution margin format of income statement.
5. How many pizzas must the company sell to earn a target net profit of $50,000? (Ignore income taxes.)
6. How many pizzas should Five-Star Pizza sell in order to make a $60000 net profit after tax? Assume that the tax rate is 25%.
7. What is the Five-Star Pizza's total profit or loss when 5200 pizzas are sold?
8. What is the Five-Star Pizza's total profit or loss when 4800 pizzas are sold?
|
Which market targeting strategy is virgin america following
: Using the full spectrum of segmentation variables, describe how Virgin America segments and targets the market for airline services.
|
|
Compute and discuss the return on equity
: Compute and discuss the return on equity (ROE), return on assets (ROA), profit margin ratio, asset turnover ratio, current ratio, cash flow ratio
|
|
Determine the total amount of delivery service costs
: Depreciation on delivery Advertising 1,600 equipment 11,200 Delivery equipment repairs 300. Determine the total amount of delivery service (product) costs
|
|
Compute the operating cash cycle for fgl
: Compute the operating cash cycle for FGL for the years 2011, 2012, and 2013. Outline and discuss the implications of this computation.
|
|
Explain the concept of break-even point
: Explain the concept of 'break-even' point and justify your answers in 1 & 3 above, with the calculation using contribution margin format of income statement
|
|
Evidence of cultural intelligence
: How does cultural strategic thinking plays a part within your current organization or an organization that you are familiar with.
|
|
Calculate the fixed cost for period
: Calculate the fixed cost for Period 2. The following past costs have been recorded at two activity levels for a large valuation corporation
|
|
Maintain the company performance
: For Toyota company, What internal governance mechanisms would you propose to monitor managers' decision making?
|
|
Components of a doctoral dissertation
: Why is the problem statement one of the most important components of a doctoral dissertation
|