A bakery specializes in cupcakes and chocolate cookies. The bakery estimates that cupcakes will account for 75%
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A bakery specializes in cupcakes and chocolate cookies. The bakery estimates that cupcakes will account for 75% of its total sales, whereas chocolate cookies will account for 25% of its total sales. The annual fixed cost to make these products is $20,000. The variable cost including ingredients and labor to make a cupcake is $1.00 and to make a chocolate cookie is $ 0.50. The bakery sells cupcakes for $3.50 per piece and chocolate cookies for $2.50 per piece.
a. How many units of each item, cupcakes and chocolate cookies, will the bakery need to sell to breakeven?
b. What is the breakeven point in sales in dollars?
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Labindao Antoque
I graduated in 2018 with a Bachelor of Science degree in Psychology from Dalubhasaan ng Lungsod ng San Pablo. I tutored students in classes and out of classes. I use a variety of strategies to tutor students that include: lecture, discussions about the subject matter, problem solving examples using the principles of the subject matter being discussed in class , homework assignments that are directed towards reinforcing what we learn in class , and detailed practice problems help students to master a concept. I also do thorough research on Internet resources or textbooks so that I know what students need to learn in order to master what is being taught in class .
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