Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Laura Hall owns and operates Wildhorse, a bakery that creates personalized birthday cakes for a childs first birthday. The cakes, which sell for $60 and

Laura Hall owns and operates Wildhorse, a bakery that creates personalized birthday cakes for a childs first birthday. The cakes, which sell for $60 and feature an edible picture of the child, are shipped throughout the country. A typical months results are as follows:

Sales revenue $826,200
Variable expenses 660,960
Contribution margin 165,240
Fixed expenses 79,440
Operating income $ 85,800

What is Wildhorses contribution margin per unit?

Contribution margin per unit $enter contribution margin per unit amount in dollar per cake

(b)

What is Wildhorses monthly breakeven point in units?

Breakeven point enter breakeven point value in number of units cakes

(c)

What is Wildhorses contribution margin ratio?

Contribution margin ratio enter contribution margin ratio in percentages %

(d)

What is Wildhorses monthly breakeven point in sales dollars?

Breakeven sales enter breakeven sales amount in dollars

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions