Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are P48,000. The sales price averages P9, and it costs the company P3 to make and deliver each pizza. Required A. How many pizzas must Vince's sell to break even? B. How many pizzas must the company sell to earn a target net profit of $54,000? C. If budgeted sales total 9,900 pizzas, how much is the company's safety margin?

Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are P48,000. The sales price averages P9, and it costs the company P3 to make and deliver each pizza. Required A. How many pizzas must Vince's sell to break even? B. How many pizzas must the company sell to earn a target net profit of $54,000? C. If budgeted sales total 9,900 pizzas, how much is the company's safety margin?

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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Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs aro $48,000. The sales price averages $9, and it costs the company 53 to make and deliver each pizza. -How many pizzas must Vince's sell to break oven? -How many pizzas must the company sell to earn a target net profit of S54,000? -If budgeted sales total 9,900 pizzas, how much is the company's safety margin?
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