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Aracelli is planning to make fancy, multi-tiered wedding cakes for the next wedding season. To make the cakes, she must invest $2300 in some special
Aracelli is planning to make fancy, multi-tiered wedding cakes for the next wedding season. To make the cakes, she must invest $2300 in some special baking tools. To promote her business, she also needs to spend $4025 to advertise in the newspaper. She estimates that supplies and materials for each cake will cost $650. She is planning to set the price for each cake at $925. (a) Compute the contribution margin. (b) Compute the contribution rate. (c) Compute the break-even point in units. (d) Compute the break-even point in sales dollars. (a) The contribution margin per unit is (Type a whole number.)
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