College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company's...

 

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College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company's annual fixed expenses are $57,000. The sales price of a pizza is $10, and it costs the company $5 to make and deliver each pizza. (In the following requirements, 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 $63,000? Use the equation method. 1. Break-even point 2. Contribution-margin ratio 3. Break-even point sales dollars 4. Number of pizzas pizzas College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company's annual fixed expenses are $57,000. The sales price of a pizza is $10, and it costs the company $5 to make and deliver each pizza. (In the following requirements, 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 $63,000? Use the equation method. 1. Break-even point 2. Contribution-margin ratio 3. Break-even point sales dollars 4. Number of pizzas pizzas