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University Of Massachusetts Dartmouth Operations And Supply Chain Management Assignment Help - CVP Problem


Question - Tower of pizza makes a unique double stacked pizza. The company's annual fixed expenses are
$54,000. The sales price of the pizza is $10, and it costs the company $6 to make and deliver each
pizza.
1. compute the companys break-even point in units
2. what is the contribution margin ratio
3.compute the break-even sales revenue. use the CM ratio in your calculation
4. how many pizzas must they sell to earn a target pretax profit of $60,000? use the profit equation
method and compare it to the CVP formula method
5. assuming corporate tax rate of 25% how many pizzas must the company sell to earn a target after
tax profit of $60,000?

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