Question: Stan is going to open a cupcake shop called Stan's Cupcakery in Montana. He found a great location that rents for only $5,810 per month.

Stan is going to open a cupcake shop called Stan's Cupcakery in Montana. He found a great location that rents for only $5,810 per month. He will need to pay $24,527 to buy tables and chairs and all the necessary bakery equipment. He is going to price his cupcakes at $8 each. It will cost him $1.09 for ingredients and paper products for each cupcake sold.

What is his unit contribution?

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