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Jeanne Boulanger is planning to open an organic Pizza restaurant in Yaletown Vancouver. A Pizza restaurant requires considerable expenditures for facilities, labor, and equipment. Assume the annual fixed cost of operations is $300,000. She assumes that the only significant variable cost relates to bakery is organic baking ingredients. An average pizza costs $12,00. Jeanne will sell each pizza for $30,00. She is also planning to make a profit of $80,000 this year. Pierre Boulanger, Jeanne's father is considering to invest her daughter's business. Before taking the investment decision, Pierre wants Jeanne provide answers to these questions.
Question 1: How many pizza must be sold to clear the break-even point? how much total revenue is to be expected to make aprofit of CAD $80,000?
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