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replace xxx with 036 The Local Donut is a gourmet donut shop with locations throughout California, Arizona and Nevada. They sell a variety of gourmet
replace xxx with 036
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 Boston Seasonal Dip Cream 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 The company has monthly fixed costs of $15,XXX and a tax rate of 25%. REQUIRED: a) Compute the company's expected profit (net income after tax) for the month of June. (8 marks) b) Compute the company's sales mix. (5 marks) c) Assuming a consistent sales mix, how many units of each product type must the company sell to break even? (12 marks) d) Assuming a consistent sales mix, if The Local Donut wishes to earn a monthly target operating profit of d) Assuming a consistent sales mix, if The Local Donut wishes to earn a monthly target operating profit $40,000, how many units of each product type must be sold? (7 marks) NOTE: You must fill in the last THREE digits of this number based on your student number. For example, if your Student Number is T123456, then the monthly fixed costs would be $15,456. NOTE re. ROUNDING: Round any calculations to TWO decimal placesStep by Step Solution
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