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) Calculate the break-even point and margin of safety (both expressed as a number of boxes of cakes) assuming annual sales of 35,000 Your friend
) Calculate the break-even point and margin of safety (both expressed as a number of boxes of cakes) assuming annual sales of 35,000
Your friend is considering starting a bakery business from home. They will employ two parttime staff, paying each employee 8,500 per year. Insurance will cost 2,500 each year. The business will charge 25 for each box of luxury cakes. The cost of ingredients is estimated to be 7.50 a box. Your friend currently pays 4,000 for their home energy each year. The incremental cost of utilities (electricity and gas) will be 1.50 per box of cakesStep by Step Solution
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