Calculate unit and percentage break-even volumes

Assignment Help Accounting Basics

Reference no: EM131988242

Problem

Suppose you are the only pizza shop in your community. The marginal cost of making a pizza is $4. You are currently charging $15/per pizza and are considering a 20% price reduction. Since you are currently operating at capacity, selling 400 pizzas a day, you will have to install new equipment (ovens, etc.) if your sales volume increases. The cost of the added equipment is $400 per day for each new increment of 100 pizzas.

a) Calculate unit and percentage break-even volumes for the 20% price reduction (SHOW ALL CALCULATIONS)

b) After calculating the break-even point, you need to decide whether.

Reference no: EM131988242

Questions Cloud

Pedigree associated with x-linked dominant inheritance : When examining a pedigree associated with x-linked dominant inheritance you observe a circle that is black.

Develop a work plan and schedule for your workgroup : In this assessment task you are required to develop a work plan and schedule for your workgroup, using the scenario provided.

What are the implications for financial reporting : List all the governments that have jurisdiction over the resident or property. What are the implications for financial reporting of this jurisdictional overlap?

Airway resistance bronchodilation-bronchoconstriction : At what level of the respiratory system is the body able to exert the greatest level of overall control over airway resistance through bronchodilation

Calculate unit and percentage break-even volumes : Calculate unit and percentage break-even volumes for the 20% price reduction. After calculating the break-even point, you need to decide whether.

Controversies surrounding development of health insurance : Discuss controversies surrounding the development of health insurance and the government's role in providing, financing, and regulating health insurance

Increase government spending and lower income taxes : The inflation rate is -2.4%, meaning overall, prices are falling. Mr.Bill has suggested the following to policy makers:

How much will you have paid since january one : When the card is paid off, how much will you have paid since January 1? What percentage of your total payment from part (b) is interest?

Prepare the closing entries for beta : ACC 511 Assignment - Prepare the closing entries for Beta. Calculate the ratios for Beta's profitability, liquidity and credit risk /solvency

User Account

All Pages