Determine the number of pizzas


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.)

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Accounting Basics: Determine the number of pizzas
Reference No:- TGS0700040

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