Question
Asher Hyatt owns and operates BabyCakes, a bakery that creates personalized birthday cakes for a childs first birthday. The cakes, which sell for $64 and
Asher Hyatt owns and operates BabyCakes, a bakery that creates personalized birthday cakes for a childs first birthday. The cakes, which sell for $64 and feature an edible picture of the child, are shipped throughout the country. A typical months results are as follows:
Sales revenue | $1,122,560 | |
Variable expenses | 841,920 | |
Contribution margin | 280,640 | |
Fixed expenses | 121,280 | |
Operating income | $ 159,360 |
How many cakes will Asher Hyatt have to sell if she wants to earn $193,248 in operating income each month?
19658 cakes
Assuming a 30% tax rate, how many cakes will Asher Hyatt have to sell if she wants to earn $111,664 in net income each month? (Round answer to 0 decimal places, e.g. 25,000.)
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