How many pizzas must vince''s sell to break even, Cost Accounting

Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $48,000. The sales price averages $9, and it costs the firm $3 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 profit of $54,000?
C. If budgeted sales total 9,000 pizzas, how much is the company's safety margin in dollars?
D. Vince's assistant manager, an accounting major, has suggested that the firm should try to increase the contribution margin per pizza. Explain the meaning of "contribution margin" in layman's terms.

 

Posted Date: 3/1/2014 1:53:50 AM | Location : United States







Related Discussions:- How many pizzas must vince''s sell to break even, Assignment Help, Ask Question on How many pizzas must vince''s sell to break even, Get Answer, Expert's Help, How many pizzas must vince''s sell to break even Discussions

Write discussion on How many pizzas must vince''s sell to break even
Your posts are moderated
Related Questions
General Motors has to raise new capital in one of the following three ways. Using the income tax rate of 32%, find the after-tax cost of new capital in each case. (A) Sell commo

Functional Classification of Costs Beneath this classification, costs are classified according to the function they execute in an organization.  Costs can functionally be clas

If question (CA IPCC) is silent which method to follow: avg cost or fifo or lifo?

A 1- year Canadian bond with a face value of 5000 can be purchased at 4800. a) Calculate the nominal interest rate in Canada. b) if the Canadian dollar is expected to depreci

Schedule of Work in Process The given schedule presents the calculations which pertain to work in the process. Pay attention to the details, noting that (1) direct materials

Manufacturing statements and cost behavior  Tampa Foundry began operations during the current year, manufacturing various products for industrial use. One such product is light-g

importance of marginal costing &standing costing

Value one stock using the dividend discount model of stock valuation with two periods of constant growth (not the simple one period growth model).  See chapter 18 of the textbook


Amanda Deal, president of XYZ, had recently finished an arduous round of meetings with her financial staff". Those meetings dealt with the details necessary to produce an accurate