Transcribed Image Text: You have a business selling and delivering pizzas to businesses for lunch. You pay $4,000 per month in rent, $320 for utilities, and $2,000 a month for

Transcribed Image Text: You have a business selling and delivering pizzas to businesses for lunch.
You pay $4,000 per month in rent, $320 for utilities, and $2,000 a month
for salaries. You also have delivery cars that cost $1,000 per month.
Your variable costs are $8 per pizza for ingredients and $4 per pizza for delivery costs.
You sell the pizzas for $20 each.
Round up if necessary
is the number of pizzas you need to sell to break even for the month
If you want to make a profit of 2,000 per month, how many pizzas do you
need to sell?
Round up if necessary
Go back to the original numbers
If the price of cheese goes up and your variable costs go by $3
what is your new break even in pizzas if you increase your price to $21
Round up if necessary
Golden Company has a fleet of delivery trucks and has the following
Overhead costs per month with the miles driven
Miles Driven
Total Costs
March
50.000
194.000
Aprill
40.000
170.200 this is the low
May
60.000
217.600
June
70.000
241.000
Use the gh-Low method to determine the
a. Variable Cost per Mile
b. Fixed Costs

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