College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company's annual fixed expenses are $58,000. The sales price of a pizza is $10, and it costs the company $2 to make and deliver each pizza. (In the following requirements, Ignore income taxes.) Required: SUsing the contribution-margin approach, compute the company's break-even point in units (pizzas). What is the contribution-margin ratio? Note: Enter your answer as a decimal. Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation. . How many pizzas must the company sell to earn a target profit of $64,000? Use the equation method. Break-even point Contribution-margin ratio Break-even point sales dollars Number of pizzas pizzas
College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company's annual fixed expenses are $58,000. The sales price of a pizza is $10, and it costs the company $2 to make and deliver each pizza. (In the following requirements, Ignore income taxes.) Required: SUsing the contribution-margin approach, compute the company's break-even point in units (pizzas). What is the contribution-margin ratio? Note: Enter your answer as a decimal. Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation. . How many pizzas must the company sell to earn a target profit of $64,000? Use the equation method. Break-even point Contribution-margin ratio Break-even point sales dollars Number of pizzas pizzas
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company's annual fixed expenses
are $58,000. The sales price of a pizza is $10, and it costs the company $2 to make and deliver each pizza. (In the following
requirements, ignore income taxes.)
Required:
usUsing the contribution-margin approach, compute the company's break-even point in units (pizzas).
What is the contribution-margin ratio?
Note: Enter your answer as a decimal.
Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation.
How many pizzas must the company sell to earn a target profit of $64,000? Use the equation method.
Break-even point
Contribution-margin ratio
Break-even point sales dollars.
Number of pizzas
pizzas
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education