Edward Cheezer's Makes and Sells Frozen Four-Cheese Pizzas, New York-Style

question 136

Multiple Choice

Edward Cheezer's makes and sells frozen four-cheese pizzas, New York-style. The expected selling price is $10 per pizza. The projected variable cost per pizza is $6. The estimated fixed costs per month are $10,000. If 6,000 pizzas are sold in a given month and fixed costs increase by $5,000, the overall profit is

• A) $15,000.
• B) $19,000.
• C) $20,000.
• D) $9,000.

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Definitions:

Working Backward

A problem-solving strategy where the solution is imagined first and steps to reach it are then determined.

Changing Representation

The process of altering how information, ideas, or concepts are perceived or depicted.

Algorithm

A well-defined procedure or set of rules to be followed in calculations or problem-solving operations.

Heuristic

A mental shortcut that allows individuals to solve problems and make judgments quickly and efficiently, based on practical methods and experiences.