Pizza Pizazz is a local restaurant. Price and cost information follows:

Price per pizza $13.21

Variable cost per pizza

Ingredients $2.20

Direct labor $1.07

Overhead (box, etc.) $.13

Fixed cost per month $4,218.30

Requirement 1:

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.

Requirement 2:

Assume that Pizza Pizazz sold 445 pizzas last month. Calculate the company’s degree of operating leverage.

Requirement 3:

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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