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Easton Bakery makes bread. Results for the months of January and February were as follows: January February Number of loaves of bread produced and sold5

Easton Bakery makes bread. Results for the months of January and February were as follows:

JanuaryFebruary Number of loaves of bread produced and sold5 million 4 million $ Millions $ Millions Sales revenue$2.50$2.00Flour & other ingredients$1.25$1.00Direct labour0.500.40Production overhead0.500.45General & administrative overhead0.100.10Total cost$2.35$1.95Operating profit$0.15$0.05

Use this information to answer the questions that follow.

  1. The contribution margin per million loaves of bread is __________.

2. The total fixed cost is __________.

3. The break-even point in millions of loaves of bread is __________.

4. If Easton Bakery sells 10 million loaves of bread, its expected operating profit would be __________.

5,To make a profit of $0.25 million, Easton Bakery would have to sell how many loaves?

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