Product Hawaiian Fruit Pizza Aloha Seafood Pizza Sales Price $35 $45 Variable Cost $10 $15 California Pizza anticipates selling 6,000 Hawaiian Fruit Pizzas, 4,000 Aloha Seafood Pizza every month. Monthly common fixed costs which can't be separated to any pizzas are $70,000 and income tax rate is 30%.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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What is the shops breakeven sales volume in units & in dollars for both pizzas & for each pizza? (Please provide work)
**Product Information**

| Product                 | Sales Price | Variable Cost |
|-------------------------|-------------|---------------|
| Hawaiian Fruit Pizza    | $35         | $10           |
| Aloha Seafood Pizza     | $45         | $15           |

**Sales Forecast and Financial Details**

California Pizza anticipates selling 6,000 Hawaiian Fruit Pizzas and 4,000 Aloha Seafood Pizzas every month. The monthly common fixed costs, which cannot be allocated to any specific type of pizza, amount to $70,000. The income tax rate is set at 30%.
Transcribed Image Text:**Product Information** | Product | Sales Price | Variable Cost | |-------------------------|-------------|---------------| | Hawaiian Fruit Pizza | $35 | $10 | | Aloha Seafood Pizza | $45 | $15 | **Sales Forecast and Financial Details** California Pizza anticipates selling 6,000 Hawaiian Fruit Pizzas and 4,000 Aloha Seafood Pizzas every month. The monthly common fixed costs, which cannot be allocated to any specific type of pizza, amount to $70,000. The income tax rate is set at 30%.
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