1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
natali 33 [55]
3 years ago
15

If the maximum operating capacity of the Gobblecakes bakery is 12,000 cupcakes annu- ally, determine the break-even volume as a

percentage of that capacity. Gobblecakes is a bakery that specializes in cupcakes. The annual fixed cost to make cupcakes is $18,000. The variable cost including ingredients and labor to make a cupcake is $0.90. The bakery sells cupcakes for $3.20 apiece. If the bakery sells 12,000 cupcakes annually, determine the total cost, total revenue, and profit.
Business
1 answer:
bixtya [17]3 years ago
8 0

Answer:

(a) 65.22%

(b) $28,800; $38,400; $9,600

Explanation:

Total cost:

= variable cost + fixed cost

= (12,000 × 0.90) + 18,000

= 28,800

Total Revenue:

= quantity of cupcakes sold × selling price of each cupcake

= 12,000 × 3.2

= 38,400

Profit:

= Total revenue - Total cost

= 38,400 - 28,800

= 9,600

Break even sales:

= Fixed cost ÷ contribution margin

= 18,000 ÷ (3.2 - 0.90)

= 7,826.087

Break even volume in capacity:

= Break even sales ÷ Cupcakes produced

= 7,826.087 ÷ 12,000

= 65.22%

You might be interested in
Flaherty is considering an investment that, if paid for immediately, is expected to return $140,000 five years from now. If Flah
makkiz [27]

Answer:

PV= $90,990.39

Explanation:

Giving the following information:

Future value= $140,000

Number of periods= 5 years

Rate of return= 9%

<u>To calculate the price to pay today, we need to calculate the present value. We will use the following formula:</u>

PV= FV/(1+i)^n

PV= 140,000 / (1.09^5)

PV= $90,990.39

7 0
3 years ago
What improves managerial level business processes?
asambeis [7]
<span>Rationalization improves business processes at managerial level because it is the production method that includes management and the technologies used that lead to better productivity and profitability. This is the most used process for this result at the managerial level.</span>
4 0
3 years ago
The producers of Power Drink promote their drink over Energy Plus Drink in their advertisements. This type of advertisement is r
gtnhenbr [62]
Display advertisement?
3 0
3 years ago
In 1971, Congress passed a law that banned cigarette advertising on television. After the ban it is most likely that the (i) pro
swat32

After the ban on cigarette advertising, the total costs incurred by cigarette companies increased and the prices of cigarettes also increased.

<h3>What is advertising?</h3>

The process of making people and the society at large aware about a product, which is available to be brought in the market, is known as advertising.

Cigarette advertising was banned in order to curb the negative impacts of smoking addiction of impressionable youth in the society. As a result, the production costs went higher as it impacted the prices of cigarettes.

Hence, option C holds true regarding advertising.

Learn more about advertising here:

brainly.com/question/3163475

#SPJ1

3 0
2 years ago
Mission Company is thinking of discontinuing product line F because it is reporting an operating loss. All fixed costs are unavo
Ierofanga [76]

Answer:

Operating income will decrease.

Explanation:

The company's operating income is dependent on the production lines and in the short run the company might be cutting its expenses and losses by shutting down the production line but cutting a part of the company which can produce revenue is never a solution rather the company checks how they can cut down their expenses as they have unavoidable fixed expenses by this action it will seem that they will cut $21000 rental expense only and how much revenue will they will actually loose? a lot.

The company can even adjust on the space they rent or move t a cheaper cost and also work on the expenses that are unavoidable to decrease them and maximize on getting more revenue.

4 0
3 years ago
Other questions:
  • Hurry!! #10
    5·1 answer
  • The business must depend on the team for what in order for the business to do any meaningful planning
    8·2 answers
  • If we stare at a pattern for a sufficient amount of time our brains will answer
    9·1 answer
  • The number of customers who dine at Eat and Den, a restaurant, varies during weekdays and weekends. On days when customer traffi
    9·1 answer
  • Dell Computer uses recycled and recyclable materials in its product and packaging design in an effort to minimize damage to the
    15·1 answer
  • A project initially costs $40,500 and will not produce any cash flows for the first 2 years. Starting in Year 3, it will produce
    10·1 answer
  • Moorman Corporation reports the following information: Correction of understatement of depreciation expense in prior years, net
    15·1 answer
  • Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manu
    12·1 answer
  • Which of the following would be the MOST useful strategy for learning to 5 diém communicate effectively with international emplo
    13·1 answer
  • Eddie bauer wants to expand its market share, which is currently 30%. Its current share of voice is also 30%. If the company wan
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!