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    Break-Even for Sam's Pizza

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    Sam's Pizza is considering a new store location. For accounting purposes, fixed operating costs for a store are $185,000 a year, and variable costs are 36 percent of sales. The average pizza sells for $11. Compute the annual break-even sales level in number of pizzas for this store location.

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    Solution Summary

    This solution shows formula and calculations for break-even in an attached Excel file.