University Pizza delivers pizzas to the dormitories and apartments near a major state university. The company’s annual fixed expenses are $67,000. The sales price of a pizza is $16, and it costs the company $8 to make and deliver each pizza. (In the following requirements, ignore income taxes.)

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University Pizza delivers pizzas to the dormitories and apartments near a major state university. The company’s annual fixed expenses are $67,000. The sales price of a pizza is $16, and it costs the company $8 to make and deliver each pizza. (In the following requirements, ignore income taxes.)

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Darshita6.14K 0 Comments
Particualr Amount in $
Sale Price 16
Variable Cost 8
Contribution (S-V) 8
Contribtion Margin Ratio
Contribution (S-V) 8
Sale Price 16
Contribtion Margin Ratio=c/S 0.5
Break even point
Particualr Amount in $
Fixed Cost 67000
Contribution per Unit 8
BEP = Fixed Cost / Contribution Per unit 8375
break-even sales revenue.
BEP Unit 8375
Sale price 16
Sales Revenue 134000

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