Questions
Numerical
You sell a pizza for $20 and it costs you $15 to make it. If your fixed costs are $80,000 and you aim to make a net income of $4’500 this month, how much must your dollar sales be? Assume your tax rate is 30%.
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Step-by-Step Analysis
To start, identify the key financials: price per pizza is 20, variable cost per pizza is 15, so the contribution margin per pizza is 5 dollars.
The contribution margin r......Login to view full explanationLog in for full answers
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