Jackson's  Pizza delivers pizzas to residences and apartments near a major state university. The company's annual fixed costs are $50,000. The sales price averages $24, and it costs the firm $10 to make and deliver each pizza.

Required:

A. Determine how many pizzas must Jackson sell to break even?
B. Determine many pizzas must the company sell to earn a target profit of $28,000?
C. If budgeted sales total 8,500 pizzas, determine how much is the company's safety margin in dollars?

Answer rating: 100% (QA)

Solution contribution marginSalesVariable costs 1064 Ans AB... View the full answer