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GrogVix [38]
3 years ago
11

The fixed cost of Perfect Pizzas, a pizza restaurant, is $400,000 per year. The cost of ingredients and chef to make one pizza i

s $6. If customers pay $10 to buy one pizza, Perfect Pizzas needs to sell at least _____ pizzas per year to avoid losses.
Business
1 answer:
ella [17]3 years ago
4 0

Answer:

The correct answer is 100,000 pizzas.

Explanation:

According to the scenario, the given data are as follows:

Fixed cost = $400,000

cost per pizza = $6

Sale price per pizza = $10

So, we can calculate the number of pizza to sell per year to avoid losses by using following formula:

First we calculate the profit per pizza

Profit = Sale price - Cost per pizza

= $10 - $6

= $4

Now, Number of pizza to sell = Fixed cost ÷ profit per pizza

= $400,000 ÷ $4

= 100,000

Hence, the number of pizza to sell per year to avoid losses is 100,000.

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$150,000

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4 0
3 years ago
The price elasticity of demand for a particular cancer drug is zero and the price elasticity of supply is 0.50. If a $1 excise t
Ede4ka [16]

Answer:

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