Explore BrainMass

Explore BrainMass

    Break-Even for Sam's Pizza

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com June 4, 2020, 2:45 am ad1c9bdddf
    https://brainmass.com/business/capital-budgeting/break-sam-pizza-476520

    Solution Summary

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

    $2.19

    ADVERTISEMENT