User Account

All Pages

How many pizzas must company sell to earn target net profit

Assignment Help Accounting Basics
Reference no: EM132703072

Question a) Calculate the company's break-even point in units (pizzas).

Question b) What is the contribution margin ratio?

Five-Star Pizza delivers pizzas to the residential halls and units near 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:

Question c) Calculate the break-even sales revenue. Use the contribution margin ratio in your calculation.

Question d) Explain the concept of 'break-even' point and justify your answers in requirements (a) and (c) above, with the calculation using contribution margin format of income statement.

Question e) How many pizzas must the company sell to earn a target net profit of $50,000? (Ignore income taxes).

Question f) 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%.

Reference no: EM132703072

Questions Cloud

Determine the amount of Sophie withholding for same period : For the first payroll period in July 2018, she is paid wages of $3,900 monthly. Determine the amount of Sophie withholding for same period
Examine charismatic and transformational leadership styles : Examine the charismatic and Transformational Leadership Styles as an Emotional Approach to Organization Change with the help of relevant examples.
Which is true regarding the validity of observation closure : Management has taken immediate action to address an observation received, Which is true regarding the validity of the observation closure?
Determine the number of withholding allowances : Assuming Phan files as head of household, use Form W-4 to determine the number of withholding allowances Phan should claim
How many pizzas must company sell to earn target net profit : How many pizzas should Five-Star Pizza sell in order to make a $60000 net profit? How many pizzas must the company sell to earn a target net profit of $50,000?
Management information systems homework : Define cloud and explain the three key terms in your definition. Compare and contrast cloud-based and in-house hosting.
Provide the explanations forresults of ratios for nova ltd : Provide four (4) possible explanations for the results of the various ratios for Nova Ltd and explain their implications for the audit.
How will Marta employer treat the contribution : Marta's employer contributes $2,000 to a qualified retirement plan for Marta's benefit in the current year. How will Marta's employer treat the contribution
Why the process of ethical decision-making depends : Explain why the process of ethical decision-making depends on a number of moral, social-psychological, and organizational factors?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Cash Flow Statement Assignment

Cash Flow Statement Assignment - Payment of dividends to stockholders $20,000. Prepare the Statement of Cash Flows for Biden Company

  Equipment was purchased on january 5 2011 at a cost of

equipment was purchased on january 5 2011 at a cost of 90000. the equipment had an estimated useful life of 8 years and

  What is the amount Metlock will receive on the sale of note

Metlock Inc. loans money to John Kruk Corporation in the amount of $784,000. What is the amount Metlock will receive on the sale of note

  Prepare the journal entries to record the exchange

Prepare the journal entries to record the exchange of Marco Company office equipment which has a calendar year end

  What amount did Swifty receive from the bond issuance

Interest is payable semiannually on April 1 and October 1. What amount did Swifty receive from the bond issuance

  Horizontal analysis and vertical analysis

Distinguish between the following pairs of terms in not more than five lines for each pair. You can use examples to illustrate your answer.

  Define the accounting cycle

Define the accounting cycle. Explain the revenue principle and its implication on the financial statements

  What is dairy days contribution margin ratio

Variable costs are $ 1.00 per cone. Fixed costs are $2,200 per month. What is Dairy Days' contribution margin ratio

  Determine the cost of goods purchased under

Identify the accounts that are added to or deducted from purchases to determine the cost of goods purchased under a periodic system. For each account, indicate (a) whether it is added or deducted, and (b) its normal balance.

  Discuss the amount of earnings for the year

In addition to the regular salaries, the company pays an annual bonus based on the amount of earnings for the year

  How it should be applied by law enforcement officers.

Explain how the concept of justice relates to the field of criminal justice, emphasizing how it should be applied by law enforcement officers.

  What are some of the advantages of video conferencing

What are some of the advantages of video conferencing? Describe a recent meeting you attended that could have been conducted using video conferencing.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd