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Gnoma [55]
3 years ago
11

Randy’s Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are

$32,800. The sales price averages $9, and it costs the firm $5 to make and deliver each pizza. Required: A.How many pizzas must Randy’s sell to break even? B.How many pizzas must the company sell to earn a target profit of $36,800? C.If budgeted sales total 10,100 pizzas, how much is the company's safety margin in dollars?
Business
1 answer:
riadik2000 [5.3K]3 years ago
5 0

Answer:

a. 8,200 pizzas

b. 17,400 pizzas

c. $17,100

Explanation:

The computation is shown below:

a. For break even point

= (Fixed expenses ) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $9 - $5

= $4

So, the break even point is

= $32,800 ÷ $4

= 8,200 pizzas

b. For target profit

The break even point is

= (Fixed expenses + target profit) ÷ (Contribution margin per unit)  

= ($32,800 + $36,800) ÷ $4

= 17,400 pizzas

c. And, the margin of safety in dollars is

= (Total sales - break even sales) × selling price per unit

= (10,100 pizzas - 8,200 pizzas) × $9

= $17,100

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Answer:

C. Estimated warranty payable for $26,500.

Explanation:

The monthly sales are $530,000 and the warranty costs are 5% of monthly sales,

Therefore, Warranty costs will be = $530,000*5% = $26,500.

Now, we know that no defective products were returned during the current month, hence the other options in the questions are discarded and Estimated warranty payable is taken at the month end.

Thank buddy.

Good luck and Cheers.

8 0
3 years ago
2. What does the cash flow statement tell you about how costs are distributed over the life span of the project?
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5 0
3 years ago
What places are likely to support a large consumer population?.
Tresset [83]

The places to support a large consumer population are the areas with abundant water and sunlight.

<h3>What is the population?</h3>

The population is defined as the number of persons in a single area, whether it would be a country, region, or any locality.

Governments normally specify the size of the resident population inside their jurisdiction using a count, a methodology of collecting, analyzing, gathering, and publishing data regarding a population.

The large consumer population supports the area where there is abundant water and sunlight.

Therefore, abundant water and sunlight support a large consumer population.

Learn more about the population, refer to:

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3 0
2 years ago
Should Trade Restrictions be Used to Influence Human Rights Issues?
mr_godi [17]

Trade restrictions should not be used to influence human rights issues, as such rights are inherent to human beings and must be protected by the State, regardless of a nation's political and commercial system.

<h3 /><h3>How does trade affect human rights?</h3>

Through the commercial interaction between countries facilitated by globalization, there is an increase in the search for profitability and consumption, which causes increased exploration at work to reduce expenses, and social inequality, increasing poverty and reducing the quality of life.

Therefore, it is essential that the protection of human rights be a priority action of a government, through regulations, public policies, worker support and training, reducing the negative impact of trade on citizens' rights.

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7 0
1 year ago
A $150 petty cash fund has cash of $54 and receipts of $83. The journal entry to replenish the account would include a
Reptile [31]

Answer:

Option A.

Explanation:

It is given that a $150 petty cash fund has cash of $54 and receipts of $83.

We need to find the journal entry to replenish the account.

Cash and receipts = Cash + receipts

                               = $54 + $83

                               = $137

Short for cash = Cash fund - Cash and receipts

                       = $150 - $137

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The required journal entry to replenish the account would include a debit to Cash Over and Short for $13.

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