1. Virtue Ventures 2007 Break Even Analysis

2. Virtue Ventures 2007 2 Conduct A Breakeven Analysis XYZ Nonprofit decides to use its existing kitchen space to open a pizza delivery business for corporate accounts. The standard price of a pizza with regular delivery is $13.00. Ingredients for one pizza are estimated to cost $1.75/pizza. The nonprofit will hire a manager at $35,000/year as well as drivers to deliver its pizzas. Commission to drivers on each pizza delivered is $2.00/pizza. The company will conduct a direct mail campaign that is estimated to cost $15,000. The nonprofit’s market research indicates that there are approximately 3000 potential corporate accounts and that each successfully wooed account would purchase, on average,.45 pizzas per day. Should XYZ Nonprofit pursue this opportunity? How many pizzas need to be sold to breakeven?

3. Virtue Ventures 2007 3 Conduct A Breakeven Analysis