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How many pizzas must the company sell to earn a target

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Reference no: EM132655057

College pizza delivers pizzas to the dormitories and apartments near a major state university. The company's annual fixed expenses are $40,000. The sale price of a pizza is $10, and it costs the company $5 to make and deliver each pizza. in the following requirements, ignore income taxes.

Problem 1: using the contribution-margin approach, compute the company's break even point in units (pizza)?

Problem 2: what is the contribution-margin ratio?

Problem 3: compute the break even sales revenue. use the contribution margin ratio in your caculation?

Problem 4: how many pizzas must the company sell to earn a target profit of 65,000? use the equation

Reference no: EM132655057

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