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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.
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 $330,000 a year in fixed expenses. Assume that it sells 4 glazed doughnuts for every 1 jelly doughnut and every 1 cake doughnut. DOUGHNUT TYPE SALES PRICE VARIABLE COST Glazed $0.38 $0.20 Jelly $0.56 $0.45 Cake $0.40 $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 Cake doughnuts Glazed doughnuts eTextbook and Media 343750 343750 1375000 Attempts: 1 of 3 used (b) What amount of revenue would need to be generated by each type of doughnut for the company to earn $72,700 in operating income? (Round intermediate calculations and final answers for the number of doughnuts to the nearest whole dollar, e.g. 5,275.) Jelly doughnuts $ Cake doughnuts $ Glazed doughnuts $
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