Question
Laura Hall owns and operates Wildhorse, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $60 and
Laura Hall owns and operates Wildhorse, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $60 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows:
Sales revenue | $826,200 | |
Variable expenses | 660,960 | |
Contribution margin | 165,240 | |
Fixed expenses | 79,440 | |
Operating income | $85,800 |
(a)
What is Wildhorse's contribution margin per unit?
Contribution margin per unit | $enter contribution margin per unit amount in dollar per cake |
(b)
What is Wildhorse's monthly breakeven point in units?
Breakeven point | enter breakeven point value in number of units cakes |
(c)
What is Wildhorse's contribution margin ratio?
Contribution margin ratio | enter contribution margin ratio in percentages % |
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(d)
What is Wildhorse's monthly breakeven point in sales dollars?
Breakeven sales | $enter breakeven sales amount in dollars |
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