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The Superior Taste is a company producing and selling custom cakes. They sell the cakes for $50 each. Manufacturing cost is $25 per cake;
The Superior Taste is a company producing and selling custom cakes. They sell the cakes for $50 each. Manufacturing cost is $25 per cake; marketing costs $3 per cake and delivery cost is 10% of the selling price. Fixed Cost of the business is $10000 and the capacity is 1000 cakes. a) Compute the break-even point as a percent of capacity. b) Compute the break-even point in dollars. c) Draw a break-even chart. d) What is the company's profit if they sell 700h cakes? e) What is the maximum fixed cost they can pay, if the price they can charge drops to $35? C
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