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Hometown Bakery sells three types of doughnuts: glazed, jelly, and cake. The following table shows the sales price and variable costs for each type. The
Hometown Bakery sells three types of doughnuts: glazed, jelly, and cake. The following table shows the sales price and variable costs for each type. The bakery incurs $337,000 a year in fixed expenses. Assume that it sells 3 glazed doughnuts for every 1 jelly doughnut and every 1 cake doughnut. DOUGHNUT TYPE Glazed Jelly Cake SALES PRICE $0.37 $0.59 $0.42 VARIABLE COST $0.22 $0.45 $0.27 (a) Your answer is correct. How many doughnuts of each type will be sold at the breakeven point? (Round intermediate calculations and final answers for the number of doughnuts to the nearest whole, e.g. 5,275.) Jelly doughnuts 455405 Cake doughnuts 455405 Glazed doughnuts 1366216 (b) What amount of revenue would need to be generated by each type of doughnut for the company to earn $82,100 in operating income? (Round intermediate calculations and final answers for the number of doughnuts to the nearest whole dollar, ag. 5,275.) Jelly doughnuts $ $ Cake doughnuts Glazed doughnuts $
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