Suppose you are keen to start a home bakery.

Your business should be selling at least three items. For the home bakery;

1. Research and come up with a list of all the fixed and variable costs involved (e.g. cost of raw materials, depreciation of baking ovens) and the appropriate selling prices for the home bakery. You may search on the internet or visit actual businesses. State your source of data clearly.

1. Conduct a multi-product break-even analysis for one month. Your analysis should report on the break-even number of units to be sold and a reasonable sales mix.

1. Describe how your answer in part (a) will affect your decision to start the business and/or the way you will operate it.