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Question - Hot Pizza makes and delivers pizzas.  The company's annual fixed expenses are $50,000. The sales price of a pizza is $12, and it costs the company $7 to make and deliver each pizza.

Required:

a. Compute the company's break-even point in units (pizzas).

b. Determine HOT Pizza's contribution-margin ratio.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92570358
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