Suzanne Michaels from Howie's Pizza was asked to calculate the break-even point for a new line of gourmet pizzas (prebaked, ready to take home). The selling price will be $25 per pizza. The labor cost is $5 per pizza. The administrative costs of operating the company are estimated to be $60,000 annually and the sales and marketing expenses are $20,000 a year. Additionally, the cost of materials will be $10 per pizza. What is the break-even quantity? 

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To calculate the breakeven quantity for the new line of gourmet pizzas we need to determine the numb... View the full answer