Contribution Margin per unit-Sale per price- Variable cost per unit 8.95-3,75 5.2 per piece Break-even Volume Fixed Cost/Contribution Margin per unit 27,000/5.2 per unit 5,192 pieces a. If The General Store sells 20 pizzas per day, how many days would it take to break even? b. The manager of the store anticipates that once the local pizza delivery services start losing business, they will react by cutting prices, If after a month (30 days) the manager c. has to lower the price of a pizza to $7.95 to keep demand at 20 pizzas per day, as she expects, what will the new break-even point be, and how long will it take the store to break even?

Contribution Margin per unit-Sale per price- Variable cost per unit 8.95-3,75 5.2 per piece Break-even Volume Fixed Cost/Contribution Margin per unit 27,000/5.2 per unit 5,192 pieces a. If The General Store sells 20 pizzas per day, how many days would it take to break even? b. The manager of the store anticipates that once the local pizza delivery services start losing business, they will react by cutting prices, If after a month (30 days) the manager c. has to lower the price of a pizza to $7.95 to keep demand at 20 pizzas per day, as she expects, what will the new break-even point be, and how long will it take the store to break even?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 24E: Busy-Bee Baking Company produces a variety of breads. The average price of a loaf of bread is 1....

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