Question

please answer one and two.

Problem 1 XYZ Restaurant, only sells pepperoni pizzas. The restaurant incurs the following expenses: Each pizza sells for $10.00/each. Fixed Costs per month Variable Costs per pizza Flour 0.50 General Labor Rent 1,500 3,000 3.00 Cheese Peppero ni Utilities 450 2.00 Please submit your answers to the following questions: 1. What is the contribution margin? 2. How many pizzas must the restaurant sell in order to break even every month? 3. If XYZ Restaurant wants to make a desired profit of $6,300/month, how many pizzas do they need to sell? Problem 2 The Wood Company has the following costs: Cost Category Cost Rent Utilities Insurance Payment Period Monthly Monthly Quarterly $1,500 500 900 Annually 3,600 Property Taxes Wood Sawing Labor Price Per Shelf Per Shelf Per Shelf Per Shelf 3.00 1.00 0.75 15.00 The Wood Company will break even with monthly production of units, and sales of dollars At 300 units of production, the Wood Company has monthly fixed costs of ? The Wood Company has variable costs per unit of ?

Answer 1

1) Fixed cost = 1500+3000+450 = 4950

Variable cost per pizza = 0.50+3+2 = 5.5

Contribution margin per pizza = 10-5.5 = 4.5 per pizza

2) Break even = Fixed cost/Contribution margin per pizza = 4950/4.5 = 1100 pizza

3) Required sales = (4950+6300)/4.5 = 2500 pizza

Note: Pls post each que individually as per HOMEWORKLIB RULES