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marusya05 [52]
3 years ago
11

A restaurant sells pizza at a rate of $13.57/slice. Expenses for the restaurant include raw material for pizza at $8.57 per slic

e, $172.00 as monthly rental and $61.00 monthly as insurance. How many slices should the restaurant sell in a month to break even?
Business
1 answer:
Sladkaya [172]3 years ago
8 0

Answer:

The restaurant need to sell 46.6 slices (47 slices)

Explanation:

Giving the following information:

The restaurant sells pizza at a rate of $13.57/slice. Expenses for the restaurant include raw material for pizza at $8.57 per slice, $172.00 as monthly rental and $61.00 monthly as insurance.

To calculate the break-even point in units, we need to use the following formula:

Break-even point= fixed costs/ contribution margin

Break-even point= (172 + 61) / (13.57 - 8.57)

Break-even point= 46.6 slices

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