The minimum number of pizza's to be sold in order to meet Ahmed' Fixed Cost of 2750KD is
Break-Even Sales (Units)= Fixed Cost/Contribution
Where, Contribution= Selling price-Variable Cost
Given, Fixed Cost = 2750KD
Average Selling Price of a Pizza 4.200KD
Variable Cost is 1.600KD per Pizza.
Now, Contribution= 4.200KD-1.600 KD=2.600KD which is also the Gross Margin.
To recover his cost Ahmed has to sell 2750/2.600= 1057.692 i.e., 1058 pizzas per month
In a day he has to sell 1058/30=35 pizzas
Ahmed running a Pizza restaurant with the fixed cost of 2,750KD (rent and salary of workers)....
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Gino's Pizza shop hires workers in a competitive market to make
pizza. The ingredients required to make each pizza cost $5. Daily
output at Gino's Pizza varies with the number of workers hired, as
shown in the table below:
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Select one:
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b. $112 per day
c. $48 per day
d. $128 per day
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