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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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