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Specialty Cakes Inc. produces two types of cakes, a round cake and a heart-shaped cake. Total fixed costs for the firm are $92,000. Variable costs
Specialty Cakes Inc. produces two types of cakes, a round cake and a heart-shaped cake. Total fixed costs for the firm are $92,000. Variable costs and sales data for these cakes are presented below. Selling price per unit Variable cost per unit Budgeted sales (units) Round cake $12 $8 10,000 How many cakes will be required to reach the breakeven point? 8,000 round cakes and 12,000 heart-shaped cakes. 23,000 round cakes and 18,400 heart-shaped cakes. 10,000 round cakes and 10,000 heart-shaped cakes. 9,000 round cakes and 11,000 heart-shaped cakes. Heart cake $20 $15 15,000
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