Question
Oriole's Donut Shop sells boxes of a dozen donuts for $9. has variable costs of $5 per box and has fixed costs of $4740 per
Oriole's Donut Shop sells boxes of a dozen donuts for $9. has variable costs of $5 per box and has fixed costs of $4740 per month. Last month. Oriole's had an operating profit of $1580. Which of the following statements is correct?
a. If Oriole's has an increase in sales of 5.0%, it can expect operating profit of $1896.
b. if Oriole's has an increase in sales of 10%, it can expect operating profit of $1896.
c. If Oriole's sold 2396 boxes last month, its operating profit would have been $2396.
d. If Oriole's had sold 1896 boxes last month, it would have hit the break-even point.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started