posted by Mandy on .
Based on surveys conducted in your area, you determine that it is feasible to sell your specialty pizzas for $15. The cost for making the pizzas includes a fixed cost of $55 and a labor cost of $4 per pizza.
Establish an equation to determine revenue. Establish an equation to determine total cost.
How many pizzas must be sold to break even (i.e., you experience neither a profit nor a loss)? Interpret your result.
As a business owner, it is very important to have an understanding of profit and loss. The formula for determining profit is Profit = revenue – cost (P = R – C).
Determine the profit if 500 specialty pizzas are sold. Interpret your result.
How many specialty pizzas would need to be sold to make a profit of $1,100? Interpret your result.