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How many pizzas must ABC sell to break even

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Reference no: EM132837151

Question - ABC Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $50,000. The sales price averages $10, and it costs the firm $3 to make and deliver each pizza.

A. How many pizzas must ABC sell to break even?

B. How many pizzas must the company sell to earn a target profit of $55,000?

C. If budgeted sales total 10,000 pizzas, how much is the company's safety margin in dollars?

Reference no: EM132837151

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