c. Compute breakeven: Apple Pie Caramel Apples Fixed Costs Total Breakeven Weighted Avg CM per unit % Weight Breakeven Breakeven per Unit

c. Compute breakeven: The variable costs associated with these inventories were as follows: And the conversion cost for the in-process pies is 50% completed and 100% for direct materials. (Use the paragraph above to calculate the units completed and transferred out for work-in-process pies) September was a success for the bakery! They didn't complete the special order but focused on normal sales and with some overtime baked a few more pies. Here were the results for the actual sales and costs at the end of the month. (The actuals as presented below are only to be used for Problem 6.) Additionally, Sally informed her that the farm received a special order to sell their apple pies and caramel apples at the local county fair in September. Sally wanted to sell 3,500 pies and 4,500 caramel apples for a discounted price of $20.00 and $7.50, respectively. With, the number of staff and the size of the bakery, Nikki determined that the maximum capacity for the bakery is 4,200 labor hours a month. At the current projected sale amounts she expects that they'll need 3,550 hours to meet their regular sales volume. After review of the salaries of all the staff, Nikki determined that the average hourly wage was $16.00. Ned was also concerned about how much it cost to keep apple pie inventory on hand at the end of the month, caramel apples should be sold within a couple days, so no inventory is left at the end of the month. Since there is a limited shelf life for the apple pies, Ned and Sally try and keep the ending inventories in line with next month's expectations. They estimated that they'd have to start 10,000 apple pies in order to have 1,000 apple pies in-process at the end of the month and 500 finished pies. At the end of August there were 500 pies that were in-process and no finished pies