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Juanita is planning to make fancy, multi-tiered wedding cakes for the next wedding season. To make the cakes, she must invest $2150 in some special
Juanita is planning to make fancy, multi-tiered wedding cakes for the next wedding season. To make the cakes, she must invest $2150 in some special baking tools. To promote her business, she also needs to spend $2470 to advertise in the newspaper. She estimates that supplies and materials for each cake will cost $690. She is planning to set the price for each cake at $900. (a) Compute the contribution margin. (b) Compute the contribution rate. (c) Compute the break-even point in units. (d) Compute the break-even point in sales dollars. (a) The contribution margin per unit is $ (Type a whole number.) (b) The contribution rate is \%. (Round to two decimal places as needed.) (c) The break-even point is cakes. (Round up to the nearest unit.) (d) The break-even point in sales dollars is $. (Type a whole number.)
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