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I already have first 5 answers. I just need last 4. Thanks very much. . The business focuses primarily on wedding, birthday and party cakes.
I already have first 5 answers. I just need last 4. Thanks very much. ". The business focuses primarily on wedding, birthday and party cakes. The business has 3 employees - 2 bakers and 1 office assistant. The business also has 2 delivery vehicles with 2 drivers.
Employees: Owner's salary Bakers Office assistant (part time) Driver $4,500 per month $2,500 per month each $1,200 per month $750 per month each Business: Phone Business insurance Building lease Commercial oven lease Mixer lease Electricity Water $100 per month $4,200 per year $3,000 per month $300 per month $1,200 per year $500 per month $75 per month Delivery Vehicles: Operations: Car insurance $1,500 per year per vehicle Cake ingredients and packaging in June $22,300 per month Fuel $1,300 per month per vehicle Cake ingredients and packaging in December $24,200 per month Oil Changes $300 per month per vehicle Average selling price of each cake in June $50 per cake Vehicle maintenance & repairs $700 per month per vehicle Average selling price of each cake in Decemb $55 per cake Avg. cakes sold during June 1,500 per month Avg. cakes sold during December 1,700 per month Note: The employee, business and delivery vehicle expenses remain the same for both June and December. Only the Operation figures change for June and December. Only the Operation figures changes to reflect June and December individually. From the above information determine the following for both June and December: a) Total fixed costs 4 marks b) Total variable costs 6 marks c) Variable cost per unit 4 marks d) Monthly net income 4 makrs e) Contribution margin per cake 2 marks f) Contribution rate per cake 2 marks g) Break Even 4 marks h) Do you have any concerns if the capacity to your bakery is 1650 cakes per mon Explain your answer completely for full mark 5 marks i) Would you buy this business? Explain your answer completely for full marks 4 marks Employees: Owner's salary Bakers Office assistant (part time) Driver $4,500 per month $2,500 per month each $1,200 per month $750 per month each Business: Phone Business insurance Building lease Commercial oven lease Mixer lease Electricity Water $100 per month $4,200 per year $3,000 per month $300 per month $1,200 per year $500 per month $75 per month Delivery Vehicles: Operations: Car insurance $1,500 per year per vehicle Cake ingredients and packaging in June $22,300 per month Fuel $1,300 per month per vehicle Cake ingredients and packaging in December $24,200 per month Oil Changes $300 per month per vehicle Average selling price of each cake in June $50 per cake Vehicle maintenance & repairs $700 per month per vehicle Average selling price of each cake in Decemb $55 per cake Avg. cakes sold during June 1,500 per month Avg. cakes sold during December 1,700 per month Note: The employee, business and delivery vehicle expenses remain the same for both June and December. Only the Operation figures change for June and December. Only the Operation figures changes to reflect June and December individually. From the above information determine the following for both June and December: a) Total fixed costs 4 marks b) Total variable costs 6 marks c) Variable cost per unit 4 marks d) Monthly net income 4 makrs e) Contribution margin per cake 2 marks f) Contribution rate per cake 2 marks g) Break Even 4 marks h) Do you have any concerns if the capacity to your bakery is 1650 cakes per mon Explain your answer completely for full mark 5 marks i) Would you buy this business? Explain your answer completely for full marks 4 marksStep by Step Solution
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