Question
LisaAndersonowns and operatesWildhorse, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $50and feature an edible picture
LisaAndersonowns and operatesWildhorse, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $50and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows:
Sales revenue$768,000Variable expenses537,600Contribution margin230,400Fixed expenses104,700Operating income$125,700
(a)
What isWildhorse'scontribution margin per unit?
Contribution margin per unit$
enter contribution margin per unit amount in dollar
per cake
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(b)
What isWildhorse'smonthly breakeven point in units?
Breakeven pointenter breakeven point value in number of units
cakes
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(c)
What isWildhorse'scontribution margin ratio?
Contribution margin ratioenter contribution margin ratio in percentages
%
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(d)
What isWildhorse'smonthly breakeven point in sales dollars?
Breakeven sales$
enter breakeven sales amount in dollars
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