Chapter 12, Problem 12.33C

To determine

(A)

Introduction:

Breakeven point means that sale profit equal to profit when there is no loss no profit condition has applied.

To choose:

Calculate breakeven point in pizzas per month.

To determine

(B)

Introduction:

Break-even analysis is an expected component of most business plans, especially soar start-up companies. Thus, analysis show how much revenue you need to cover both fixed and variable cost.

To choose:

1. entrepreneur.com/calculator/breakeven.html

To determine

(C)

Introduction:

Ifcompany increase the production of pizza then company increase the operating income and also increase the variable cost, but fixed cost will not increase.

To choose:

If company increase the production up to 2000 pizza then what is the operating income.

To determine

(D)

Introduction:

Company always want to increase the profit by taking any possible steps. Even company increase the production or decrease the sale price.

To choose:

What will be effect on the operating income if decrease the sale price

1. If Selling price decrease by 10%.
2. If selling price increase by $20, but sale will be decreased by 20%
3. Higher pizza price cost increased up to $8. Then find the operating income, then production of pizza up to 2200.
4. A more efficient pizza oven is available that would reduce the electricity used in each pizza. Variable costs would be reduced to $5 per pizza, then fixed cost will be increased $15000.

To determine

(E)

Introduction:

Dominic's want to increase the profit by taking any step. In this case company taken four step for increase the profit then company want to select the best option.

To choose:

Write a memo to Dominic's explaining the result of your analysis.