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College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company's annual fixed expenses are $40,000. The sales 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).
required:
Problem 1: using the contribution -margin approach, compute the company's break-even point in units (pizzas)
Problem 2: what is the contribution margin ratio?
Problem 3: Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation
Problem 4: How many pizzas must the company sell to earn a target profit of $65,000. use the equation method
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