Maggie is planning to open a pizza shop. She’s crunched the numbers and determin
ID: 1105741 • Letter: M
Question
Maggie is planning to open a pizza shop. She’s crunched the numbers and determined the following:
Selling price per pizza $19
Fixed expenses
Leases and startup costs $20,000
Interest (startup loan) expense $10,000
Variable expenses
Cost of good sold $6
Shop labor $3
If Maggie wants to earn a profit of $5,000 this year, how many pizzas does she have to sell?
Question 2 options:
500
3,000
3,500
5,000
500
3,000
3,500
5,000
Explanation / Answer
number of pizza to sell
=(20000+10000+5000)/(19-6-3)
=3500
the above is the answer
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