In early 2019, Mike & Jane founded Mike & Janes Moon Cake Company. They began producing small quantities of unique flavors and blends in limited editions. Revenues were $800,000 in 2020 and were estimated at $2.2 million in 2021. Because Mike & Jane were selling premium moon cake containing premium ingredients, each small piece of moon cake sold for $5 and the cost of producing the moon cake averaged $2 per piece. Other expenses plus taxes averaged an additional $1 per piece of moon cake in 2020 and were estimated at $3.50 per piece in 2021.

A. Determine the number of pieces of moon cake sold each year.

B. Estimate the dollar amounts of gross profit and net profit for Mike & Janes venture in

2020 and 2021.

C. Calculatethegrossprofitmarginsandnetprofitmarginsin2020and2021. D. Briefly describe what has occurred between the two years.