Contribution Margin per unit-Sale per price- Variable cost per unit 8.95-3,75 5.2 per piece Break-even Volume Fixed Cost/Contribution Margin per unit 27,000/5.2 per unit 5,192 pieces a. If The General Store sells 20 pizzas per day, how many days would it take to break even? b. The manager of the store anticipates that once the local pizza delivery services start losing business, they will react by cutting prices, If after a month (30 days) the manager c. has to lower the price of a pizza to $7.95 to keep demand at 20 pizzas per day, as she expects, what will the new break-even point be, and how long will it take the store to break even?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Contribution Margin per unit-Sale per price- Variable cost per unit
-8,95-3,75
-5.2 per piece
Break-even Volume Fixed Cost/Contribution Margin per unit
27,000/5.2 per unit
5,192 pieces
a. If The General Store sells 20 pizzas per day, how many days would it
take to break even?
b. The manager of the store anticipates that once the local pizza
delivery services start losing business. they will react by cutting
prices, If after a month (30 days) the manager
c. has to lower the price of a pizza to $7.95 to keep demand at 20 pizzas
per day, as she expects, what will the new break-even point be, and
how long will it take the store to break even?
10. Kim Davis has decided to purchase a cellular phone. but she is unsure
Transcribed Image Text:Contribution Margin per unit-Sale per price- Variable cost per unit -8,95-3,75 -5.2 per piece Break-even Volume Fixed Cost/Contribution Margin per unit 27,000/5.2 per unit 5,192 pieces a. If The General Store sells 20 pizzas per day, how many days would it take to break even? b. The manager of the store anticipates that once the local pizza delivery services start losing business. they will react by cutting prices, If after a month (30 days) the manager c. has to lower the price of a pizza to $7.95 to keep demand at 20 pizzas per day, as she expects, what will the new break-even point be, and how long will it take the store to break even? 10. Kim Davis has decided to purchase a cellular phone. but she is unsure
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