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Classify costs as variable costs, fixed costs, or mixed costs Compute the contribution margin, the...

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Accounting

Classify costs as variable costs, fixed costs, or mixed costs

Compute the contribution margin, the contribution margin ratio, and the unit contribution margin

Determine the break-even point and sales necessary to achieve a target profit

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You are selling pepperoni pizzas. This is your only product. You have the following costs:

Fixed Costs Variable Costs per Pizza
General Labor $1,500 Flour $0.50
Rent $3,000 Yeast $0.05
Insurance $200 Water $0.01
Advertising $500 Cheese $3.00
Utilities $450 Pepperoni $2.00
Total $5,650 Total $5.56

What is the minimum price you should charge for the pizza and why?

If you set your pizza sales price to be $10, what is your contribution margin?

Calculate the break-even sales units and break-even sales dollars

Describe at least THREE ways to INCREASE profit (talking in terms of break-even)

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