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Margaret Moore owns and operates Carla Vista, a bakery that creates personalized birthday cakes for a childs first birthday. The cakes, which sell for $48

Margaret Moore owns and operates Carla Vista, a bakery that creates personalized birthday cakes for a childs first birthday. The cakes, which sell for $48 and feature an edible picture of the child, are shipped throughout the country. A typical months results are as follows:

Sales revenue $646,080
Variable expenses 484,560
Contribution margin 161,520
Fixed expenses 100,920
Operating income $ 60,600

(a)

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Your answer is correct.

What is Carla Vistas contribution margin per unit?

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

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(b)

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Your answer is correct.

What is Carla Vistas monthly breakeven point in units?

Breakeven point enter breakeven point value in number of units cakes

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  • Solution Walkthrough Video: Similar to Exercise 3-3, Part 2

Attempts: 1 of 3 used

(c)

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What is Carla Vistas contribution margin ratio?

Contribution margin ratio enter contribution margin ratio in percentages %

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