Question
You have just opened a bakery selling high-end muffins and would like to make $55,000 per year. :You sell muffins in boxes of a dozen
You have just opened a bakery selling high-end muffins and would like to make $55,000 per year. :You sell muffins in boxes of a dozen but you price each muffin at $3.50. Each muffin costs $0.32 in ingredients plus a 5 paper cup. Each shipping box costs $1.20.Rent on the bakery is $2,100 per month and utilities are estimated at $750 each month. In addition, there is an annual health inspection fee which last year was $250.
How do I find
a) With respect to the number of boxes of muffins, what kind of cost is the health inspection fee?
b) The contribution margin of each box of muffin
c) The amount of muffin boxes I must sell in order to reach target profit
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