- Exercise 7 24 Pizza Delivery Business Basic Cvp Analysis Lo 7 1 7 2 7 4 College Pizza Delivers Pizzas To The Dormito 1 (72.3 KiB) Viewed 13 times
Exercise 7-24 Pizza Delivery Business; Basic CVP Analysis (LO 7-1,7-2, 7-4) College Pizza delivers pizzas to the dormitories and apartments near a major state university. The
company's annual fixed expenses are $68,000. 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: 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. 4. How many pizzas must the
company sell to earn a target profit of $74,000? Use the equation method. 1. 2. 3. 4. Answer is complete but not entirely correct. Break-even point Contribution-margin ratio Break-even point sales dollars Number of pizzas $ 8 0.8 8,500 x 85,000 pizzas