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One of Karen's favorite things in the whole world is her grandma's banana bread. Karen has become so obsessed with this bread tha she's
One of Karen's favorite things in the whole world is her grandma's banana bread. Karen has become so obsessed with this bread tha she's using her grandma's recipe and making it for her friends. She and her friends have tweaked the recipe so that they can make delicious banana chocolate chip muffins and banana squares, too. They've turned this into a side business, selling their items to local convenience stores. There's one problem: the baked goods are best when well-ripened bananas are used. They're often available at a reduced price. But when they're not, Karen has to buy green bananas at full price and wait for them ripen. Here are the typical costs and selling prices for each product. Bread (per loaf) Muffin (per dozen) Selling price $4.10 === $5.30 $3.70 Squares (per dozen) Variable costs 1.90 2.60 1.60 Calculate Karen's total contribution margin if she produces and sells at the quantities specified in part (b). (Round answer to 2 decimal places, eg. 15.25.)
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