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How many of each type of cupcake will have to be sold in order to increase the monthly profit by $4,600 (to $32,108)? Provide all
How many of each type of cupcake will have to be sold in order to increase the monthly profit by $4,600 (to $32,108)? Provide all working.
Katie's Kupcakes Contribution margin income statement for the month ending 29 February 2020 Sales revenue $76,000 Variable costs: Cost of sales $28,800 Marketing costs $4,400 General & administrative $6,000 200 costs Contribution margin $36,800 Fixed costs: Marketing costs $1,756 General & administrative $7,536 $9,292 costs Profit $27,508 Katie's Kupcakes makes a variety of everyday cupcakes (such as raspberry, chocolate, vanilla etc) which sell for $4.00 each. They also make cupcakes for special events (such as birthday parties, baby showers, company events etc) with extra decorations which are different for each order. These special cupcakes sell for $6.00 each. In the month of February, Katie's Kupcakes sold 10,000 everyday cupcakes and 6,000 special cupcakes. This is the usual sales mix. Variable costs of each type of cupcake are as follows: Everyday Special Cost of sales $1.50 $2.30 Marketing costs $0.20 $0.40 General & administrative costs $0.30 $0.50Step by Step Solution
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