Question

Crusty’s pizza company sells its pepperoni pizza for $18.75. It costs Crusty’s $9.25 to make each...

Crusty’s pizza company sells its pepperoni pizza for $18.75. It costs Crusty’s $9.25 to make each pepperoni pizza. Crusty’s also has fixed costs of $3500 per month. How many pepperoni pizzas must Crusty’s sell each month to break even (round to the nearest full pizza)?

A.

368

B.

187

C.

378

D.

215

0 0
Add a comment Improve this question Transcribed image text
Answer #1

A. 368

Let the number of pizzas to be sold each month to break even be X, then:

3500 + 9.25*X = 18.75*X

9.5*X = 3500

X = 368 Approximately

Add a comment
Know the answer?
Add Answer to:
Crusty’s pizza company sells its pepperoni pizza for $18.75. It costs Crusty’s $9.25 to make each...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • please answer one and two. Problem 1 XYZ Restaurant, only sells pepperoni pizzas. The restaurant incurs...

    please answer one and two. Problem 1 XYZ Restaurant, only sells pepperoni pizzas. The restaurant incurs the following expenses: Each pizza sells for $10.00/each. Fixed Costs per month Variable Costs per pizza Flour 0.50 General Labor Rent 1,500 3,000 3.00 Cheese Peppero ni Utilities 450 2.00 Please submit your answers to the following questions: 1. What is the contribution margin? 2. How many pizzas must the restaurant sell in order to break even every month? 3. If XYZ Restaurant wants...

  • 2) Jack owns a pizza place, where he works as the pizza chef. He pays himself...

    2) Jack owns a pizza place, where he works as the pizza chef. He pays himself a salary of $1,500. Jack has calculated that one pizza requires $0.50 worth of flour, $0.05 worth of yeast, $0.01 worth of water, $3.00 worth of cheese, and $2.00 worth of pepperoni to make. Jack also pays $3,000 for rent, $200 for insurance, $450 for utilities, and $500 for advertising. If Jack sells one pizza for $10, how many pizzas does he need to...

  • Edwardsville Pizzeria makes one of the most delicious pepperoni pizzas in their geographical area. Since their...

    Edwardsville Pizzeria makes one of the most delicious pepperoni pizzas in their geographical area. Since their pizzas are hand made to order but they must compete with many of the large pizza chains on the basis of price, they want to make sure that they very tightly control the costs to make a pizza without sacrificing any quality in the process. They have established the following standards for operations. EDWARDSVILLE PIZZERIA PEPPERONI PIZZA STANDARDS Direct Materials (Dough, Sauce, Pepperoni) 1...

  • managerial accounting Edwardsville Pizzeria makes one of the most delicious pepperoni pizzas in their geographical area....

    managerial accounting Edwardsville Pizzeria makes one of the most delicious pepperoni pizzas in their geographical area. Since their pizzas are hand made to order but they must compete with many of the large pizza chains on the basis of price, they want to make sure that they very tightly control the costs to make a pizza without sacrificing any quality in the process. They have established the following standards for operations. EDWARDSVILLE PIZZERIA PEPPERONI PIZZA STANDARDS Direct Materials (Dough, Sauce,...

  • Pete’s pizzeria makes and sells pizza for $0.79. Each pizza costs $0.19 for materials. Labor to...

    Pete’s pizzeria makes and sells pizza for $0.79. Each pizza costs $0.19 for materials. Labor to make and sell the pizza is $8.00 per person per hour or $64 a day (8-hour workday). Fixed costs for rent, utilities, etc. average $120 per day. A minimum of two workers (one to cook and one to sell) are needed. If the demand is more than 500, they need an additional person. In fact, each additional 500 units of demand require another person...

  • Could you please help me to solve this exercise, I m very appreciate if you can...

    Could you please help me to solve this exercise, I m very appreciate if you can do it as much details as you can with formulas provided so that I can understand how the numbers come from. Many thanks 1 of 2 The cost structure of B&M Restaurant, which sells only pepperoni pizza, is the following (all the costs are reported on a monthly basis): Rent Cheese General Labor Pepperoni Flour Insurance Advertising Utilities Yeast Water $3,600 $2,850 $2,800 $1,500...

  • Gelbart Company manufactures gas grills. Fixed costs amount to $20,152,800 per year. Variable costs per gas...

    Gelbart Company manufactures gas grills. Fixed costs amount to $20,152,800 per year. Variable costs per gas grill are $360, and the average price per gas grill is $900. Required: 1. How many gas grills must Gelbart Company sell to break even? gas grills 2. If Gelbart Company sells 40,310 gas grills in a year, what is the operating income? $ 3. If Gelbart Company’s variable costs increase to $378 per grill while the price and fixed costs remain unchanged, what...

  • write your answer in the space provided or on a separate sheet of paper. 26) Randy's...

    write your answer in the space provided or on a separate sheet of paper. 26) Randy's Pizza delivers pizzas to dormitories and apartments near denvers pizzas to dormitories and apartments near a maior state university. The companys annual fixed costs are $48,000. The sales price averages $9, and it costs 000. The sales price averages $9, and it costs the firm $3 to make and deliver each pizza. Required: A. How many pizzas must Randy's sell to break even? B....

  • Juniper Enterprises sells handmade clocks. Its variable cost per clock is $23.80, and each clock sells for $34.

    Juniper Enterprises sells handmade clocks. Its variable cost per clock is $23.80, and each clock sells for $34. Calculate Juniper's contribution margin per unit and contribution margin ratio. If the company's fixed costs total $7,446, determine how many clocks Juniper must sell to break even Calculate Juniper's contribution margin per unit and contribution margin ratio. (Round your "Unit Contribution Margin" answer to 2 decimal places.) If the company's fixed costs total $7,446, determine how many docks Juniper must sell t break even.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT