Tower of pizza makes a unique double stacked pizza. The company's annual fixed expenses are $54,000. The sales price of the pizza is $10, and it costs the company $6 to make and deliver each pizza.
1. compute the companys break-even point in units
2. what is the contribution margin ratio
3.compute the break-even sales revenue. use the CM ratio in your calculation
4. how many pizzas must they sell to earn a target pretax profit of $60,000? use the profit equation method and compare it to the CVP formula method
5. assuming corporate tax rate of 25% how many pizzas must the company sell to earn a target after tax profit of $60,000?