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Please Help The Local Donut is a gourmet donut shop with locations throughout California, Arizona and Nevada. They sell a variety of gourmet donuts and
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The Local Donut is a gourmet donut shop with locations throughout California, Arizona and Nevada. They sell a variety of gourmet donuts and their four main flavours are Vanilla Dip, Chocolate Dip, Boston Cream and a monthly seasonal flavour. Information related to the sales that are expected for the month of June is below: Vanilla Dip Chocolate Dip Boston Cream Seasonal 3,000 3,500 3,125 4,000 Expected sales in units) Sales price per unit $5.00 $5.50 $6.50 $7.00 Variable cost per unit $2.00 $2.15 $2.75 $3.00 15000 The company has monthly fixed costs of aand a tax rate of 25%. REQUIRED: a) Compute the company's expected profit (net income after tax) for the month of June. b) Compute the company's sales mix. c) Assuming a consistent sales mix, how many units of each product type must the company sell to break even? d) Assuming a consistent sales mix, if The Local Donut wishes to earn a monthly target operating profit of $40,000, how many units of each product type must be soldStep by Step Solution
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