Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are P48,000. The sales price averages P9, and it costs the company P3 to make and deliver each pizza. Required A. How many pizzas must Vince's sell to break even? B. How many pizzas must the company sell to earn a target net profit of $54,000? C. If budgeted sales total 9,900 pizzas, how much is the company's safety margin?

Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are P48,000. The sales price averages P9, and it costs the company P3 to make and deliver each pizza. Required A. How many pizzas must Vince's sell to break even? B. How many pizzas must the company sell to earn a target net profit of $54,000? C. If budgeted sales total 9,900 pizzas, how much is the company's safety margin?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

profit margin
calculate unit costs and create cost reconcilliation
What is the unit product cost under variable costing?
provide the variable cost per unit
the role of costing and impact on profitability.
Summary for Cost Volume Profit Analysis
What is the relationship between labor costs and profit per unit?
Need help with total expected cost
How does the fixed cost per unit change as the level of activity (or cost driver) increases? Why?
Product and period cost according to absorption costing and Variable costing with examples ?
What does it mean that a cost is a direct, product, and variable cost?
Please explain the calculation of variable cost ratio