Tom owns a Pizza Restaurant. Expenses for the restaurant include raw material for pizza at $5.79 per slice, $152.00 as monthly rental and $52.00 monthly as insurance. A restaurant sells pizza at a rate of $10.79/slice. How many slices should the restaurant sell in a month to break even?
Break-even point:
= Fixed costs/Contribution per unit
= ($152+$52)/($10.79-$5.79)
= $204/$5
= 40.8
Hence, Break-even is 40.8 days or 41 days
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