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Frost Bakery Inc. has recently built a store in the metro where they can serve pet - friendly baked goods such as bread and cakes

Frost Bakery Inc. has recently built a store in the metro where they can serve pet-friendly baked goods such as bread and cakes that can be consumed by the customers pets. They spent a total of 150,000 pesos building the store, and they were very happy with the outcome. They began with one product called a pupcake for their store opening. The pupcake is a single cupcake meant to be served to pet dogs. Each piece is sold for 130 pesos. In preparation for their store opening, Frost Bakery Inc. bought an oven for 36,700 pesos. They also bought ingredients such as flour, bananas, peanut butter, potatoes and many more! They spent about 5,000 pesos for the ingredients in preparation for the store opening. For every piece of pupcake, it would cost a total of 80 pesos of ingredients each. The owners thought about buying baking equipment, however all the bowls, mixers, and other equipment needed were gifted to them by angel investors. Assuming these are all the costs to open the new store and serve the first customers of Frost bakery Inc., answer the questions that follow below.
What is the contribution margin?
How many pupcakes do they need to sell to reach breakeven?
Frost Bakery Inc. desires a profit of 30,000 from the pupcakes. What must be his volume of sales to achieve this profit?
Frost Bakery Inc. has decided to expand its product line by introducing a new item on the menu called pupshakes. They hired you to help them identify their potential demand for this new product. There was an estimate of 4,000 pet owners in the barangay where the store was opened. After surveying 100 pet owners in the area, 80 pet owners responded that they are interested to purchase the pupshakes. Among those 80 respondents, half of them would like to purchase 2 pupshakes, while the rest would settle for just 1 pupshake. However, when the same respondents learned that each pupshake would be sold for 200 pesos, only 30 was willing to pay the price. The others thought it was priced too high. Assuming a conservative rate of 50% from these responses, answer the questions that follow below.
4. What is the net market acceptability rate?
5. What is the number of potential buyers?
6. What is the annual consumption rate?
7. What is the annual potential demand?

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