The student business club on your campus has decided to hold a pizza fund raiser. The club plans to buy 50 pizzas from Dominos and resell them in the student center. Based upon the specials advertised on the Dominos website, what will you need to charge per slice (assume 8 slices per pizza) in order to break even? Since this is a fund raiser, what would you suggest charging for each slice and, based on this, what would the net profit be to this club? Why do you feel breakeven analysis is so crucial in the development of new products for businesses?
Accepted Solution
A:
Answer: 2.50 per slice would be okay because most people would order 2 slices and that would have them give you an even 5.00. Net profit for this would be 464.00Step-by-step explanation:The specials advertised on Domino's website is 5.99 for each pizza, 8 slices.The break even price is 1.34 per slice. This is important to know because a business never wants to take a loss.