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Assume Ekor bakery produces only doughnuts. It costs $0.15 in raw materials of one doughnut and $0.25 in direct labor to bake one doughnut.
Assume Ekor bakery produces only doughnuts. It costs $0.15 in raw materials of one doughnut and $0.25 in direct labor to bake one doughnut. In addition, there are fixed costs of $0.5 (the equipment used). Fill this table and find costs of baking different amounts of doughnuts. With how many productions, the cost of producing a doughnut is the lowest? Quantity of doughnuts Raw material Direct Total Fixed labor Total costs costs variable costs Cost per costs costs doughnut 0 5 10 50
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