Pizza Pizazz is a local restaurant. Price and cost information follows:
Price per pizza $13.01
Variable cost per pizza
Ingredients 2.29
Direct labor 1.02
Overhead (box, etc.) 0.23
Fixed cost per month $2,841.00
1. Determine Pizza Pizazz’s break-even point in units and sales dollars.
Break-even units:
Break-even sales dollars:
2. Determine the restaurant’s margin of safety if it currently sells 400 pizzas per month. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number. Omit the “$” sign in your response.)
Margin of safety:
3. Determine the number of pizzas that Pizazz must sell to generate $1,800 in profit. (Round your intermediate calculations to 2 decimal places and final answer to next whole number.)
Target sales in units: