Break-even Analysis problem. Using the following information, answer the questions below Mama's Pizzeria only sells pepperoni pizzas. The restaurant insurs the following expenses: Each pizza sells for $10/each. General Rent Utilities Fixed Costs per month Labor Variable Costs per pizza 0.50 2.50 2.00 0.50 1,500 Flour 3,000 Cheese 450 Pepperoni Sauce 1. What is the contribution margin? 2. How many pizzas must the restaurant sell in order to break even every month?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
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Problem 6EA: Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in...
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Break-even Analysis problem. Using the following information, answer the questions below
Mama's Pizzeria only sells pepperoni pizzas. The restaurant insurs the following expenses:
Each pizza sells for $10/each.
Fixed Costs per month
General Labor
Rent
Utilities
Variable Costs per pizza
0.50
2.50
2.00
0.50
1,500 Flour
3,000 Cheese
450 Pepperoni
Sauce
1. What is the contribution margin?
2. How many pizzas must the restaurant sell in order to break even every month?
Transcribed Image Text:Break-even Analysis problem. Using the following information, answer the questions below Mama's Pizzeria only sells pepperoni pizzas. The restaurant insurs the following expenses: Each pizza sells for $10/each. Fixed Costs per month General Labor Rent Utilities Variable Costs per pizza 0.50 2.50 2.00 0.50 1,500 Flour 3,000 Cheese 450 Pepperoni Sauce 1. What is the contribution margin? 2. How many pizzas must the restaurant sell in order to break even every month?
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