Wang Bakery sells muffins. The average selling price for of a muffin is $5.40. Average variable cost per muffin is $2.60. The average fixed expenses per month is $2,492. The average number of muffins sold per month is 900.

What is the breakeven in sales dollars?

	a.	$4,860
	b.	$890
	c.	None of the options is correct
	d.	$4,806
	e.	$2,520

Wang Bakery sells muffins. The average selling price for of a muffin is $5.40. Average variable cost per muffin is $2.60. The average fixed expenses per month is $2,492. The average number of muffins sold per month is 900.

Would you decrease the variable cost per muffin to $2.40 and the selling price to $5.00 if the number of muffins sold per month would increase to 980?

	a.	Not enough data to make a decision
	b.	Yes, because Wang will sell more units
	c.	Yes, because profit increases
	d.	No, because contribution margin per unit decreased
	e.	No, because profit decreases