Sam's Pizzeria is a Pizza restaurant in Dekalb County

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Sam's Pizzeria is a Pizza restaurant in Dekalb County. The average selling price of a slice of pizza is $2.50 and the average variable expense per slice is .85 cents. The average fixed expense per month is $2,400. An average of 3,250 slices of pizza are sold each What is the break-even sales in dollars and units? Complete the CVP income statement for both break even and for the current monthly volume.

(Hint: Break-even sales = Fixed expenses /CM Ratio)

Units 1

  Contribution Margin Ratio

 

 

 

Break Even in Units

FC  

CM#

 

Break Even in Sales Dollars

FC  

CM%

 

CVP Income Statement

Break Even Current Volume

Units    

Sales    

Variable Costs    

Contribution Margin    

Fixed Costs    

EBIT    

 

Calculate the margin of Safety

 

Actual Sales  

Break Even Sales  

Difference  

 

Difference   margin of safety

Actual Sales