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2. Bobbie's Bagel Shop sells only coffee and bagels. Bobbie estimates that every time she sells two bagel, and three cups of coffee. The budgeted
2. Bobbie's Bagel Shop sells only coffee and bagels. Bobbie estimates that every time she sells two bagel, and three cups of coffee. The budgeted cost information for Bobbie's products for 2011 follows: Fixed Costs Rent on store and equipment: $10,000 Marketing and advertising cost: $4,000 a. How many cups of coffee and how many bagels must Bobbie sell in order to break even assuming the sales mix of three cups of coffee to two bagel, given previously? Proof it. b. If the sales mix is three cups of coffee to two bagel, how many units of each product does Bobbie need to sell to earn operating income before tax of $14,000 ? If tax rate would 30%, what is the net income? Proof it. c. Assume that Bobbie decides to add the sale of muffins to her product mix. The selling price for muffins is $3.00 and the related variable costs are $0.75. Assuming a sales mix of three cups of coffee to two bagels to one muffin, how many units of each product does Bobbie need to sell in order to break even? Proof it. (40 POINTS) Proof it, means that show at Income Statement
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