Answer:
Gobblecakes is a bakery that specialized in cupcake. The annual fixed cost to make cupcake is $18,000. The variable cost including ingredients and labor to make a cupcake is $0.9. the bakery sell a cupcake for $3.2 a piece.If the bakery sells 12,000 cupcakes annually, determine the total cost, total revenue, and profit.
Total cost= variable cost + fixed cost
TC= 0.9+18,000
TC= $18,000.90
Total revenue= price X quantity of goods
TR= 3.2 X 12000
TR= $38,400
Profit= TR-TC
Profit= $38,400-$18,000.9
profit= $20,399.10
Explanation:
Answer:
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Explanation:
Answer: Average profit
Explanation:
Both average profit and profit margin show the percentage of profit that a company can expect to receive from $1 worth of sales. It is calculated by dividing the profits by the sales figure,
If sales are $10 and profits are $3, the profit margin would be:
= 3/10
= 30%
This means that for every $1 of sales, there is $0.30 in profit. This method shows us whether the total profit will be negative or positive by showing us individual product profit.
Answer: Points of indifference
Explanation: Point of indifference can be defined as that level of EBIT at which two alternative financial plans have same amount of net income. It is used by managers as an evaluating tool, when it comes to choose between two cost structures which are alternative of one other.
In the given case, the company must have build point of indifference before launching of new product, and must have expected higher profits than normal beer.
its all da same because it just a company
