Question
URGENT SAM sells two types of cakes: a Basic Cake and a Fancy Cake. Assume the sales mix is 3 units of the Basic Cake
URGENT
SAM sells two types of cakes: a Basic Cake and a Fancy Cake. Assume the sales mix is 3 units of the Basic Cake for each two units of the Fancy Cake.
Additional information related to SAMs and their cakes is below:
BASIC. FANCY TOTAL
Selling price. 25 45
Variable cost per cake 20 35
Total fixed costs 350,000
What is the breakeven point in units for each type of cake, based on all the information given above?
a. 30,000 Basic Cakes and 20,000 Fancy Cakes
b. 70,000 Basic Cakes and 46,667 Fancy Cakes
c. 42,000 Basic Cakes and 28,000 Fancy Cakes
d. 45,000 Basic Cakes and 40,000 Fancy Cakes
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