CUNY Lehman College Week 9 Break Even Analysis Case Study

You will complete Case Study 10-5 and 11-6 for a local Pizza Shop (New York,NY). Choose your favorite, hang out there for a while, and enjoy the pizza while learning about their cost structure.

For this assignment, you will need to submit 1 word document 3 pages in length 12″ font double spaced for both Cases 10-5 and Case 11-6.

Please submit the answers to the case study questions here.

Case 10-5

Classifying costs

1. With a group of students, visit a local copy and graphics shop or a take-out pizza restaurant (New York, NY). As you observe the operation, consider the costs associated with running the business. As a group, identify as many costs as you can and classify them according to the following table headings:

Cost Direct Materials Direct Labor Overhead Selling Expenses

Case 11-6

Break-even analysis (your local pizza shop)

1. Break-even analysis is one of the most fundamental tools for managing any kind of business unit. Consider the management of a pizza shop. In a group, brainstorm some applications of break-even analysis at your local pizza shop. Identify three areas where break-even analysis might be used. For each area, identify the revenues, variable costs, and fixed costs that would be used in the calculation.