Caitlin makes and sells cupcakes at the local market. For each cupcake, it cost her $1.20 for the ingredients and the packaging. The hire of the stall costs $100 for the day.

REQUIRED:

If Caitlin sells the cupcakes for $3.50 each:-

[a] How many cupcakes does she have to sell to break-even?

[b]How many does she have to sell to earn a before tax profit of $300

[c] How many does she have to sell to earn an after tax profit of $300? Assume tax rate of 30%.

Show all calculations for each of the above to prove that your answer is correct.

(please allow for rounding errors]