Use the income statement format to show your work. Use the appropriate break even formula when asked. You can earn partial credit on this question!

You sell pizza pies for an average of $16 each. Your COGS or variable costs are $6 a pie.

Your fixed monthly expenses include:

$10,000 a month for support and salaried staff.

$1000 a month for interest payments on equipment (this is a bonus factor to the question)

$4000 a month for general overhead

How many pizza pies a month do you have to sell in order to break even?

NOW, in addition, suppose your tax rate is 30%.

You actually sell 2,500 pizzas a month. What is your net income? (HINT: You already have the information above to determine what your total income AND your COGS must be - see the top of the page - you also have everything else you need to form a "proforma budget" that resembles an income statement)