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Your friends own a bakery. The bakery sells cupcakes and donuts. Your friends have requested that you help them analyze their business. They have provided

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Your friends own a bakery. The bakery sells cupcakes and donuts. Your friends have requested that you help them analyze their business. They have provided you the following information. Their monthly rent is $8,000. They sell 2,500 cupcakes per month. The price to produce the cupcakes is $.75 each. Their selling price is $2.50 each. They sell 3,000 donuts a month. The production cost of the donut is $.35 each. The selling price is $1.50 per donut. The bakery has the capacity to produce 3,000 cupcakes per month and 4,000 donuts per month. They are currently not making a profit. You decide to assist by performing some analysis on the business. You build formulas to identify the total cost, total revenue, and total profit. You decide to build a data table to review the potential profit at various production costs of the cupcakes and donuts. You want to examine the cost to produce the cupcakes starting at $.50 with increments of $.05 up to $1.00. Also, you want to examine the cost to produce the donuts starting at $.25 with increments of $.05 up to $.75. You also decide to create a scenario summary report that shows the total costs, total revenue, and the profit based on the scenarios listed below. Make sure that you name all the variable and output cells. Best P robable Worst Cupcake Demand 3,000 2,500 2,000 Cupcake Price $3.50 $2.75 $2.00 Cupcake Production Cost $.50E EEE $.60 $.75 Donut Demand 4,000 3,000 Donut Price $2.00 $1.25 Donut Production Cost $.25 $.30 $.40 2,000 $1.00 On your worksheet, highlight in yellow the answer the following questions. What are the production costs for cupcakes and donuts that will give a profit of $200? What is the net profit for the best-case scenario

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