Jan Feb April Total QTR Average Sales Price / Unit

SAlES (a) wgtd

Unit (B) 40,000.00 42,500.00 45,000.00 127,500.00 Sale Price ( all 2 toppings ) % Saales average
Price/unit $ 9.50 $ 9.50 $ 9.50 Large $ 10.50 50% $ 5.25
Total Sales Revenue $ 380,000.00 $ 403,750.00 $ 427,500.00 $ 1,211,250.00 Medium $ 8.50 50% $ 4.25
*100% $ 9.50
Variable Cost (stated pr unit) *Product Mix - 50% for Large and 50% for Medium
Production 5.55 5.55 5.55
Selling 0.10 0.10 0.10
Total Variable Cost per unit 5.65 5.65 5.65 Diirect Labor
CM Margin $ 154,200.00 $ 163,837.50 $ 173,475.00 $ 491,512.50 (C) Effeciency as minutes per pizza 15
CM per Unit $ 3.86 $ 3.86 $ 3.86 Hourly labor cost + FB $ 12.00
CM Ratio 40.6% 40.6% 40.6% Total DL per pizza $ 3.00

Fixed Costt Direct Maaterials

Selling € 50,000.00 52,500.00 55,125.00 157,625.00 Dough $ 0.25
Administrative (F) 60,000.00 63,000.00 66,150.00 189,150.00 Cheese 0.50
Total Fixed Cost $ 110,000.00 $ 115,500.00 $ 121,275.00 $ 346,775.00 Toppings 0.75
Tomato Sauce 1.00
Net Income $ 44,200.00 $ 48,337.50 $ 52,200.00 $ 144,737.50 Boxes 0.05
DM per pizza $ 2.55
Breakeven point in Sales Unit (G) 28,534 29,961 31,459
Variable Cost $ 5.55
Sale units for a target Profit of $200,000 (H) 80,373 UNITS

Sales Commissions ( D) 1.0%

D - based on the total price for the product mix Total Variable Selling Expense 0.10
E - Increasse by 5% per year
F - Increase by 5% per year
Breakeven poin in Sales = TFC / CM, per unit
JAN 110,000/3.86

UNITS 80,373
PRICE/ UNIT 9.50
Total Sales 763,546.80 100.00%
Variable Cost - 453,546.80 59.40%
CM 310,000.00 40.60%
Fixed Cost - 110,000.00
Net Profit 200,000.00
 Qty of Total Marginal Product of Average product of Qty of Total Marginal Product of Average product of
Variable Input Output Variable Input Variable Input Variable Input Output Variable Input Variable Input

0 0 0 0 0 0 0 0
1 225 225 (e) 225 (i) 1 225 225 225
2 600 (a) 375 (f) 300 2 600 375 300
3 900(b) 300 300(j) 3 900 300 300
4 1140 240 (g) 285 (k) 4 1140 240 285
5 1365 (c) 225 273(l) 5 1365 225 273
6 1350 (d) -15 (h) 225 6 1350 -15 225

Total Marginal Product of Average product of Change in Output

Output Variable Input
300*2 =600 (a) (225-0)/(1-0) = 225 (e)
225*6 =1350 (d) (600-225)/(2-1) = 375 (f)
(1140-900)/(4-3)=240(g)
(1350-1365)/(6-5) = -15(h)
Variable Input 300/(3-2)=300 + 600 = 900(b)
225/1 = 225 (i) 225/(5-4) =225 +1140 =1365 (c)
900/3 =300(j)
1140/4 =285 (k)
1365/5 =273(l)