EX 7-24 (Algo) Pizza Delivery Business; Basic CVP Analysis (LO 7-1, 7-2, 7-4)College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company's annual fixed expensesare $63,000. The sales price of a pizza is $20, and it costs the company $10 to make and deliver each pizza. (In the followingrequirements, ignore income taxes.)Required:1. Using the contribution-margin approach, compute the company's break-even point in units (pizzas).2. What is the contribution-margin ratio?Note: Enter your answer as a decimal.3. Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation.4. How many pizzas must the company sell to earn a target profit of $69,000? Use the equation method.1. Break-even point2. Contribution-margin ratio3. Break-even point sales dollars4. Number of pizzaspizzas

Break-even point: It implies thlevel of production activity at which the business will neither earn…

Answered: EX 7-24 (Algo) Pizza Delivery Business;…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...

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2 Smart pizza delivers pizzas to the dormitories and apartments near a major university. The company's annual fixed expenses are 40,000. The sales price of a pizza is $10. and it costs the company$6 to make and deliver each pizza. Required: 1) Using the CM approach, compute the company's break-even point in units(pizza) 2) What is the contribution-margin ratio 3) Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation 4) How many pizzas must the company sell to eam a target operating income of 80,000?
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X Corporation allows its sales manager to incur expenses subject to reimbursements, as follows: Electricity – 70% in the name of the company Water – 70% in the name of the company Grocery – personal Gasoline – company car Representation and transportation – business trip P20,000 2,000 10,000 12,000 4,000 What is the amount subject to fringe benefit tax? 15,400 16,600 25,400 48,000 None of the above
What is the shops breakeven sales volume in units & in dollars for both pizzas & for each pizza? (Please provide work)
8. A company pays one of its employees $800 per week. How much is the amount withheld from his pay for Social Security taxes? Group of answer choices A.$49.60 B.$11.60 C.$61.20 D.$34.52 9.Squeaky Clean laundromat purchased $6,000 worth of washing machines which are expected to last for 5 years, at which time they will have a trade-in value of $1,000. Calculate the annual depreciation using the straight line depreciation method. Group of answer choices A.$1,200 B.$1,150 C.$1,000 D.$950 10. On July 1, 2017, a company purchased a delivery van for $32,000. In five years, when they trade in the van, they will receive $3,000 toward the purchase of the next model. Using the straight-line method of depreciation, how much will they be allowed to depreciate during the first year? Group of answer choices A.$6,400 B.$5,800 C.$3,200 D.$2,900 ABC Company purchased a $65,000 piece of equipment which had an expected life of 10 years and a scrap value…
am.105.
CVP; multiproduct Mel's Accessories sells wallets and money clips. Historically, the firm's sales have averaged three wallets for every money clip. Each wallet has an $8 contribution margin, and each money clip has a $6 contribution margin. Mel's incurs fixed cost in the amount of $180,000. The selling prices of wallets and money clips, respectively, are $30 and $15. The corporate-wide tax rate is 40 percent. a. How much revenue is needed to break even? $ 756,000 x How many wallets and money clips does this represent? 648,000 x wallets 108,000 x money clips b. How much revenue is needed to earn a pre-tax profit of $150,000? Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your calculations. $ 0 c. How much revenue is needed to earn an after-tax profit of $150,000? Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your…

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