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Break-even with Opportunity Costs 25% ...

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Accounting

Break-even with Opportunity Costs 25%
Cost Behavior 25%
Multiple Product Break-even 25%
NPV (extra credit) 15%
Sunk Costs 25%

115%
Assume a local gluten-free pizzeria, on Harrison street, reported the following results for June and July
Jun Jul
Unit Sales 2,500 2,900
Cost of Food Sold $ 10,000 $ 10,600
Wages and Salaries 3,700 4,000
Rent 2,000 2,000
Depreciation 500 500
Utilities 1,400 1,500
Supplies 500 580
Total $ 18,100 $ 19,180
a. Identify each cost as being fixed, variable or mixed.
b. Determine the equation for total operating costs (Fixed + Unit Variable Cost * # of pizzas)
c. Predict the total operating costs for 3500 pizzas
d. Determine the average costs for 3500 pizzas

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