Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. birch pizza delivers pizzas to the dormitories and

Birch Pizza delivers pizzas to the dormitories and apartments near a major state university. The...

70.2K

Verified Solution

Question

Accounting

Birch Pizza delivers pizzas to the dormitories and apartments near a major state university. The companys annual fixed expenses are $60,000. The sales price of a pizza is $10, and the variable cost is $7 to make and deliver each pizza. Assume income tax rate of 20%.
Required:
a) Compute the company's breakeven volume in units of pizza.
b) What is the contribution margin ratio for University Pizza?
c) Compute the company's breakeven sales revenue in dollars.
d) How many pizzas must the firm budget sell to earn after-tax profit of $60,000 for the year?
e) At the above budgeted volume of sales, compute the operating leverage and Margin of Safety.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

5.You bought 300 shares of Apache (APA) at $46.50 per share, 200 shares ofDelta Airlines (DAL)for...

Finance
Q

A total of 23 Gossett High School students were admitted to State University. Of those students,...

Statistics
Q

Q5 1 Which of the following is FA If a genetic disease reduces fert the...

Biology
Q

Which of the options given contains a pronoun-antecedent error?Ruth and Isabel had to finish their...

Biology
Q

c 51 Among the four graph shown in the figure there i d Both a...

Physics
Q

A business pays 68 for a car seat and wants a 24 markup for operating...

Basic Math
Q

Mr. Smith invested $2,500 in a savings account that earns3% interest compounded annually. He made...

Basic Math
Q

Since the company is not large enough to occupy the entire building it owns, it...

Accounting
Q

18. If there are no units in finished goods ending inventory and cost of goods...

Accounting
Q

Chart of Accounts General Joumal Instructions On April 1, 9,000 shares of $6 par common...

Accounting
Q

Use the following information to answer questions 1-3. 1. Calculate Cash Flow from Operations 2....

Accounting
Q

The management of a 9,500-room theme hotel in Orlando projected an average occupancy of 80.00%...

Accounting