### Tower of pizza makes a unique double stacked pizza the

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Tower of pizza makes a unique double stacked pizza. The company's annual fixed expenses are \$54,000. The sales price of the pizza is \$10, and it costs the company \$6 to make and deliver each pizza.

1. compute the companys break-even point in units

2. what is the contribution margin ratio

3.compute the break-even sales revenue. use the CM ratio in your calculation

4. how many pizzas must they sell to earn a target pretax profit of \$60,000? use the profit equation method and compare it to the CVP formula method

5. assuming corporate tax rate of 25% how many pizzas must the company sell to earn a target after tax profit of \$60,000?

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