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Calculate the number of each type of cupcake that Katie's Kupcakes will need to sell per month in order to breakeven. Provide all working Katie's
Calculate the number of each type of cupcake that Katie's Kupcakes will need to sell per month in order to breakeven. Provide all working
Katie's Kupcakes Contribution margin income statement for the month ending 29 February 2020 Sales revenue $76,000 Variable costs: Cost of sales $28,800 Marketing costs $4,400 General & administrative $6,000 200 costs Contribution margin $36,800 Fixed costs: Marketing costs $1,756 General & administrative $7,536 $9,292 costs Profit $27,508 Katie's Kupcakes makes a variety of everyday cupcakes (such as raspberry, chocolate, vanilla etc) which sell for $4.00 each. They also make cupcakes for special events (such as birthday parties, baby showers, company events etc) with extra decorations which are different for each order. These special cupcakes sell for $6.00 each. In the month of February, Katie's Kupcakes sold 10,000 everyday cupcakes and 6,000 special cupcakes. This is the usual sales mix. Variable costs of each type of cupcake are as follows: Everyday Special Cost of sales $1.50 $2.30 Marketing costs $0.20 $0.40 General & administrative costs $0.30 $0.50Step by Step Solution
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