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Cost Volume Profit Problem Below: Delight Bakery sells one desert, an extra-large extreme chocolate chip cupcake with a selling price of $10 and variable costs
Cost Volume Profit Problem Below:
Delight Bakery sells one desert, an extra-large extreme chocolate chip cupcake with a selling price of $10 and variable costs of $3 per unit. The bakery's monthly fixed expense is $5,000.
a) Compute the break-even point in units and dollars.
b) How many cupcakes would Delight Bakery needs to sell to earn a target profit of $2,000?
c) Compute the Margin of Safety in dollars and percentage.
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