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TastyKreme and Krispy Kake are both producers of baked goods, but each has followed a different production strategy. The differences in their strategies resulted in

TastyKreme and Krispy Kake are both producers of baked goods, but each has followed a different production strategy. The differences in their strategies resulted in differences in their cost structure, as shown in the following table:

TastyKreme Krispy Kake
Estimated sales in units 23,000 18,000
Unit price 9 7
Variable cost per unit 6 2
Total fixed costs $ 34,500

$ 54,000

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