Holland’s Pizza delivers pizzas to residences and apartments near a major state university. The company's annual fixed costs are $150,000. The sales price averages $25, and it costs the firm $15 to make and deliver each pizza. Required: Determine how many pizzas must Holland sell to break even?B. Determine many pizzas must the company sell to earn a target profit of $25,000?C. If budgeted sales total 20,500 pizzas, determine how much is the company's safety margin in dollars?

Break even point is the point at which company is in no profit no loss situation and contribution is…

Answered: Holland’s Pizza delivers pizzas to…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6EA: Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of...

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Holland’s Pizza delivers pizzas to residences and apartments near a major state university. The company's annual fixed costs are $150,000. The sales price averages $25, and it costs the firm $15 to make and deliver each pizza.

Required:

Determine how many pizzas must Holland sell to break even?
B. Determine many pizzas must the company sell to earn a target profit of $25,000?
C. If budgeted sales total 20,500 pizzas, determine how much is the company's safety margin in dollars?

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