Pizza Pizazz is a local restaurant. Price and cost information follows:
Price per pizza $13.21
Variable cost per pizza
Direct labor $1.07
Overhead (box, etc.) $.13
Fixed cost per month $4,218.30
Calculate Pizza Pizazz’s new break-even point under each of the following independent scenarios (Round your intermediate calculations to 2 decimal places and final answer up to next whole number.):
a. Sales price increases by $1.60 per pizza.
b. Fixed costs increase by $515.00 per month.
c. Variable costs decrease by $.33 per pizza.
d. Sales price decreases by $.50 per pizza.
Assume that Pizza Pizazz sold 445 pizzas last month. Calculate the company’s degree of operating leverage.
Using the degree of operating leverage, calculate the impact on profit caused by a 15.00 percent increase in sales revenue
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