math homework

Question

Consider the restaurant Pepperoni Passion, which sells only pepperoni pizza. The expenses for the restaurant are shown below.


Monthly Fixed Costs
General Labor $1,700
Rent $2,700
Insurance $300
Advertising $400
Per Pizza Variable Costs
Utilities $525
Flour $0.75
Yeast $0.10
Water $0.05
Cheese $2.75
Pepperoni $1.50

If Pepperoni Passion prices its pizzas at $12 each, how many pizzas must it sell per month to break even? Round your answer to the nearest whole number.

Answer 1

 

The total of these monthly expenses including utils. are 5100

 The production expenses per pizza are 10.40

 

 So the expense function is 5100 + 10.40X where X is the number of pizzas Sold

 

 The revenue function is 12x

 

5100 + 10.4x = 12x

 

5100 = 1.6x

 

x-3188

 

Answer 2

Monthly Fixed Costs
General Labor $1,700
Rent $2,700
Insurance $300
Advertising $400

 

Total Monthly Fixed Cost =1700+2700+300+400 = 5100

 

Per Pizza Variable Costs
Utilities $5.25
Flour $0.75
Yeast $0.10
Water $0.05
Cheese $2.75
Pepperoni $1.50

 

Total Per Pizza Variable Cost=5.25 +0.75+0.10+0.05+2.75+1.50 = 10.4

 

selling price of pizza = 12

 

no. of pizza sell per month = x

 

so for break even

 12 x  = 5100 + 10.4 x

 

1.6x = 5100

x = 3187.5 ≈3188

So for break even 3188 pizza should be sell