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(a)Calculate the Breakeven point for Triple P Pizza in dollars and in number of pizzas. Fixed Costs: $275,000 Sales Price: $12.00/Pizza Cost of Goods: $4.50/pizza Additional Variable costs: $2.30/pizza. (b)The owners have about $100,000 invested in the business. Their desired rate of return on the investment is 15 percent. What volume of business (again, in dollars and in pizzas) must be generated to reach this ROI goal?
(c)If this business would like to start a delivery service and hire some part time labor, which amounts to an increase in variable costs of $0.85/pizza. With no other charges to the base situation, what impact would this have on the business? Show your answer in pizzas and dollars.
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