Question
Dorothy Taylor owns and operates Sandhill, a bakery that creates personalized birthday cakes for a childs first birthday. The cakes, which sell for $64 and
Dorothy Taylor owns and operates Sandhill, a bakery that creates personalized birthday cakes for a childs first birthday. The cakes, which sell for $64 and feature an edible picture of the child, are shipped throughout the country. A typical months results are as follows: Sales revenue $954,240 Variable expenses 715,680 Contribution margin 238,560 Fixed expenses 143,840 Operating income $ 94,720 (a) What is Sandhills contribution margin per unit? Contribution margin per unit $_______ contribution margin per unit amount in dollar per cake b.) What is Sandhills monthly breakeven point in units ___________________. c.) What is Sandhills contribution margin ratio? ______% What is Sandhills monthly breakeven point in sales dollars? $_____.
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