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What the contribution margin ratio

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Reference no: EM133187219

Question - Amy runs a pizza store. The monthly cost of the store rental and business permit is $1,000. Amy spends $4.5 every pizza sold. She sells each pizza for $18.

1) What the contribution margin ratio?

2) Predict operating income for a month in which Amy sells 1,500 pizzas.

3) How many pizzas does Amy need to sell each month to breakeven?

4) How much sales revenues doe Amy need to generate each month to breakeven?

5) How many pizzas does Amy need at least to sell each month to earn a target profit of $1,200 a month?

6) How much sales revenue does Amy need to generate each month to earn a target profit of $1,500 per month?

Reference no: EM133187219

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