Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Jenny will produce custom made birthday cakes with her assistant. She averages out the variable costs to be the following per cake: 1. Ingredients =
Jenny will produce custom made birthday cakes with her assistant. She averages out the variable costs to be the following per cake: 1. Ingredients = $7 2. Decorations = $10 3. Labour = $15 She attributes fixed costs of $150 per month to this product and thinks she could sell each cake for $60 dollars.
Required a. How many cakes does she need to sell per month to break even? Round to the nearest whole number. b. If she makes 50 cakes what is the margin of safety in dollars?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started