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Christy's Cookie Company gives you the following information so that you can help them perform a volume-cost analysis. Christy has to buy a new piece
Christy's Cookie Company gives you the following information so that you can help them perform a volume-cost analysis. Christy has to buy a new piece of equipment (all used for cookies, not cookie pies) that will increase her equipment cost by $12,000. What is her new break even volume of cookies? Revenue Individual Cookies $100,000 (400,000 sold at $0.25 each) Cookie Pies $25,000 (5,000 sold at $5 each) Total Revenue $125,000 Cost of Goods Sold Individual Cookies $40,000 Cookie Pies $2,500 Gross Margin $82,500 Operating Expenses Labor $16,200 ($0.04 per unit) Paper goods $8,100 ($0.02 per unit) Lease payment $24,000 Equipment costs $6,000 Total operating expenses $54,300 Net Profit before taxes $28,200 Select one: O a. 400,000 O b. 369,231 O 0 1,523 O d. 4,055
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