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
Discuss the advantages and disadvantages of designing an IC using VHDL and synthesis compared with the traditional design approach using schematic capture, simulation and layout.

In the beach city of Santa Barbara, California, there are seven bathing suit stores, each with the same schedule of costs and each facing an identical demand curve. Swim N Style is

Which method of measuring costs associated with production is more widely used in practice A. Normal Costing  B. Actual Costing  C. Both are used equally  D. Neither one

A  firm of printers  is contemplating  joining  the uniform  costing  system operated by  its Trade Association but the Managing Director is dubious about the benefits of becoming

MARGINAL COSTING Vs DIRECT COSTING Direct costing is the method where only direct costs are measured while calculating the cost of the product. Indirect costs are met in opposi

what are the material management questions

Direct Material Usage Variance Refers to the difference among the actual quantity utilized and the standard quantity particular for the actual production, all valued at the st

Under the average cost method the average cost of goods held in stock is recalculated after each receipt. An issue after the receipts is made at the recalculated average prices. A

sabonis consmetics co. purchased machinery on december 31,2011, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each dec 31. an as

Eagle Company is considering the purchase of an asset for $100,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Comput