Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are P48,000. The sales price averages P9, and it costs the company P3 to make and deliver each pizza. Required A. How many pizzas must Vince's sell to break even? B. How many pizzas must the company sell to earn a target net profit of $54,000? C. If budgeted sales total 9,900 pizzas, how much is the company's safety margin?
Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are P48,000. The sales price averages P9, and it costs the company P3 to make and deliver each pizza. Required A. How many pizzas must Vince's sell to break even? B. How many pizzas must the company sell to earn a target net profit of $54,000? C. If budgeted sales total 9,900 pizzas, how much is the company's safety margin?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6EA: Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of...
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