Pizza Hut Essay

Pizza Hut Breakeven Point

Pete Candelaria

Regis University

Pizza Hut Breakeven Point

The way allocates cost works and how I am going to show you one of the primary uses for cost allocation. We called it Break-even, and it has a great word in business. All company uses it all the time. There are different ways in different scenarios. Breakeven has to determine what is best for your business that covers all its expenses and begins to make a profit. Pizza Hut has been around since 1958. Business usually pays rent and their employees. Customers pay us for their service. Break-even analysis is the number of units that you sell and to see the difference would be if they change the output or services provided. It’s the essential part of any good business plan. Pizza Hut has the best price structure for the company’s products or services. All companies have fixed cost, variable, the average price per unit and number of units sold.

Let us look at Pizza Hut budgets. The cost of making pizza, supplies, payroll, taxes and building is various on business. Sometimes, people own a small or franchise a pizza parlor. Pizza Hut watched their ingredients the more that you add, to be fair, and usually have to look at the cost such as labor, inventory, and money situation. Pizza Hut has pizza, but they have other products to sell (breadsticks, pasta, salads, etc.). The company has variable costs expenses that vary in direct proportion to the quantity of output. It’s have production volume, rising whenever production expands and falling as well. Pizza Hut has raw materials, packaging, and labor. They own building and vehicles. Not only that they pay taxes, insurance and payroll, and they make the pizza such as ingredients and the pizza boxes. Fixed costs are expenses that have to be paid by a business of any activity.

People explained why pizza is so expensive. Pizza Hut wants to be cheap and being fast is a staple of pizza. Pizza Hut had a different location in the United...