Question

James is the manager at the local pizza store. He has been tasked with figuring out how much profit the store will show if he can sell 100 pizzas per day. He has calculated his selling price per pizza at $15, with variable costs of $4 and fixed costs of $600 per day. James will show a profit per day of $________ O $900 O $500 @ $1,100

Answer 1

Answer:

$500

EXPLANATION:

Computation of profit per day of local pizza store:

Particular	100 units Amount ($)
Sales value ($15*100 units)	1,500
Less: Variable cost ($4*100 units)	(400)
Contribution margin	1,100
Less: Fixed cost per day	(600)
Net profit per day	500

Thank you :)