Business
Business, 26.02.2020 00:53, Elsalvador7310

College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company’s annual fixed expenses are $52,000. 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.)

(1) Using the contribution-margin approach, compute the company’s break-even point in units (pizzas).
(2) What is the contribution-margin ratio? (Round your answer to 1 decimal place.)
(3) Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation.

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Answers: 3

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College Pizza delivers pizzas to the dormitories and apartments near a major state university. The c...

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