Cheryl charges $30 per cake, Required: (Be sure to label ALL relevant amounts and calculations) 1. Advise Cheryl on how many cakes she should bake/sell per month so that her business will be at break even. 2. What if Cheryl decides to raise the price of the cakes to $32.50 per cake? How will your answer to #1 changes? Before making the price change, what should Cheryl think about and consider regarding her business? Be specific. UESTION 1 1. Identify the costs below as either variable, fixed, or mixed, (b) Also, thoroughly and clearly support each of your responses. a Cell phone bill of the sales force b. Paint used to paint the tractors on the assembly line c. Activity method depreciation on painting equipment d. Utility expense on factory 2. The highest month of Utility costs is February equaling $9,240 when the total electricity used was 16,000 kilowatts (KWH). The lowest month of Utility costs is April equaling $5,280 where electricity use is 7,000 KWHs. Estimate the utility cost for July if the utility usage is estimated to be 12,700 KWHs. Show all computations. 3. Cheryl is asking for your help in planning for her home-based, custom baking company. She provided the following information: Insurance $1,000/month Depreciation on baking equipment 700/month Advertising 200/month Material (baking ingredients) Direct labor Indirect labor S6/cake SS/cake S1/cake Chaman.nl Cheryl charges $30 per cake, Required: (Be sure to label ALL relevant amounts and calculations) 1. Advise Cheryl on how many cakes she should bake/sell per month so that her business will be at break even. 2. What if Cheryl decides to raise the price of the cakes to $32.50 per cake? How will your answer to #1 changes? Before making the price change, what should Cheryl think about and consider regarding her business? Be specific. UESTION 1 1. Identify the costs below as either variable, fixed, or mixed, (b) Also, thoroughly and clearly support each of your responses. a Cell phone bill of the sales force b. Paint used to paint the tractors on the assembly line c. Activity method depreciation on painting equipment d. Utility expense on factory 2. The highest month of Utility costs is February equaling $9,240 when the total electricity used was 16,000 kilowatts (KWH). The lowest month of Utility costs is April equaling $5,280 where electricity use is 7,000 KWHs. Estimate the utility cost for July if the utility usage is estimated to be 12,700 KWHs. Show all computations. 3. Cheryl is asking for your help in planning for her home-based, custom baking company. She provided the following information: Insurance $1,000/month Depreciation on baking equipment 700/month Advertising 200/month Material (baking ingredients) Direct labor Indirect labor S6/cake SS/cake S1/cake Chaman.nl
