If we sell pizzas for $11.99 and our business' variable costs are 60% of the selling price, and we have fixed costs of $21,000 each month, can you determine how many pizzas we have to sell to breakeven? Ignore taxes. Show your work, or explain why this question can't be solved.
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Ответ:
4375 pizzas have to sell to breakeven.
Explanation:
Given:
If we sell pizzas for $11.99 and our business' variable costs are 60% of the selling price, and we have fixed costs of $21,000 each month.
Now, to find pizzas to sell to breakeven.
Fixed costs = $21,000.
Sale price = $11.99.
Variable costs:
60% of the selling price.
Now, to get the number of pizzas to sell to breakeven we put formula:
Breakeven = Fixed Costs ÷ (Sale price – Variable costs )
Therefore, 4375 pizzas have to sell to breakeven.
Ответ: