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Mario and luigi want to open up a pizza place. they have determined that the rent will cost them $2,000 per month and administrative salaries will cost $3,000 per month. the variable cost per pizza will be $7.00. mario and luigi estimate they will sell 850 pizzas per month. if mario and luigi sell all 850 pizzas and the only costs they incur are the ones listed above, what is their breakeven price per pizza?

1 Answer

2 votes
850 ×7 =5950

5950-2000=3950

3950-3000=950

950÷2=475


so both Mario and Luigi get $475
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