Question
In June of Year 1 Littel Cupcakes sold 2,000 cupcakes with a retail price of $5.00 and variable costs of $2 per cupcake. The total
In June of Year 1 Littel Cupcakes sold 2,000 cupcakes with a retail price of $5.00 and variable costs of $2 per cupcake. The total fixed costs for the month was $6,000.
Littel Cupcakes is considering a promotion for next month, July, where all customers would receive 10% off cupcakes for the entire month to celebrate the start of summer. In July, advertising expense would go up by $500 for the promotion. Littel Cupcakes is expecting to sell 3,359 cupcakes in July with the new promotion.
What is Littel Cupcakes anticipated operating income for July Year 1?
PS: Round to the nearest dollar, but just enter the number. No dollar signs or commas.
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