Gobblecakes is a bakery that specializes in cupcakes. The annual fixed cost to make cupcakes is $18,000.

Question:

Gobblecakes is a bakery that specializes in cupcakes. The annual fixed cost to make cupcakes is $18,000. The variable cost including ingredients and labor to make a cupcake is $0.90. The bakery sells cupcakes for $3.20 apiece.

a. If the bakery sells 12,000 cupcakes annually, determine the total cost, total revenue, and profit.

b. How many cupcakes will the bakery need to sell in order to break even?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Introduction to Management Science

ISBN: 978-0133778847

12th edition

Authors: Bernard W. Taylor

See More Books

Question Posted: Sep 21, 2016 08:37 AM

See More Questions

Maria manages a bakery that specializes in ciabatta bread, and she has the following information on the bakery's demand and costs: a. To maximize profit, how many loaves of ciabatta bread should...
Rex has a bakery that specializes in dog treats in a variety of sizes and flavors. Rex uses a flexible budget to forecast manufacturing overhead, which is then allocated to products based on oven...
The Rainwater Brewery produces beer. The annual fixed cost is $150,000, and the variable cost per barrel is $16. Price is related to demand, according to the following linear equation: v = 75,000 -...
A ball is thrown from the roof of a 1 0 0 m high building at a speed of 1 0 m / s making 3 0 angles with the horizontal. A child waiting on the ground at the door of the building falls into a coma...
Crop-Quick Inc. replenishes its three distribution centers in Boston, Denver and Houston from its Las Vegas central supply warehouse. The distribution schedule for one of its products for the next...
1. What type of team(s) do these employee teams appear to be? Explain. 2. As this story illustrated, sometimes it may take a long time for a team to reach its goal. As a manager, how would you...
Selenelion Ltd is a small manufacturing business. For the year ending 30 June 2024, the company achieved sales of $2 772 000 and a gross profit margin of 30%. Although satisfied with this result,...
Explore the data included in Table 4-9. Assume that the primary key of this relation consists of two components: Author's ID (AID) and Book number (BNbr). The relation includes data regarding...
In the last column for NYTD,figure out how NYT'sDNA elements will impact their performance. What DNA elements should NYTD keep, what should it jettison, and what should it change? A element...
Presented below is the basic accounting equation. Determine the missing amounts. Assets Liabilities Stockholders' Equity (a) $120,000 (b) ? (c) $100,000 $50,000 $45,000 $126,000 $58,000
If the Gobblecakes bakery in Problem 2 changes the selling price for a cupcake from $3.20 to $2.75, what effect will the change have on the break-even volume?
Two university students, Jim Carstens and Angie Orsini, are planning to open a walk-in pizza restaurant near campus that they will call Big Slice Pizza. They will have no seating and will sell two...
Why are information policy, data administration, and data quality assurance essential for managing the firm?s data resources? a) Define big data and describe the technologies for managing and...
Descrtbe the three baste uses of percentages. Gi''e a sample statement that uses a percemage m each of 1 he three ways. DIStingUish between absolu1c and relauvc change. Give an example...
Across all institutions, the ave rage cost of a three-credit college class is approximately $1500. Suppose that, between class time, commute time, and study Lime, the ave rage class requires about 10...
Underlying stock price: 30.86 Put Dove (DUV) Expiration Aug Nov Aug Nov Strike 25 25 35 35 Last 6.15 6.60 10 70 Last 05 10 4.60 5.10 What is the intrinsic value of the August $25 call on Dove stock?
An organization needs to add vendor resources to a project, but they do not have the physical space to house the team. What approach should the organization use for their personnel management?
What is troublesome to you when communicating or interacting with other people? What do you have the most difficulty with in group situations? Are you better talker or listener? ( Circle ) Explain:...
You are given the matrix a. Find A 2 and A 3 . b. Find the value of k such that A 3 kA 2 + 2A 41 = 0 c. Hence, determine A -1 . 1 0 2) A = 2 1 1 \0 1 1,
Use this circle graph to answer following Exercises. 1. What fraction of areas maintained by the National Park Service are designated as National Recreation Areas? 2. What fraction of areas...
Define the strategic goals of supply chain management, and indicate how each element of a supply chain (purchasing, production, inventory, and transportation and distribution) has an impact on these...
Several automobile manufacturers are beginning to implement programs for build-to-order cars. Identify an auto company that has initiated a BTO program and describe what it entails. Contrast the BTO...
Several automobile manufacturers are beginning to implement programs for build-to-order cars. Identify an auto company that has initiated a BTO program and describe what it entails. Contrast the BTO...
If a set of m+1 data points (x,y) are to be represent by a least squares fit of y=c logx derive an expression for c in terms of x and y.
5 If 0 = then 4 cos(0) = sin(0) =
Determine the reactions of the given beam using slope deflection method. P = 25 kN, P2 = 25 kN, and w = 25 kN/m P1 P2 2m B 2m C 4m 21 Numerical answer in 4 decimal places and positive values only: RA...

Gobblecakes is a bakery that specializes in cupcakes. The annual fixed cost to make cupcakes is $18,000.

Question:

Step by Step Answer:

a b v12000 c 18000 c 090 ...View the full answer

Introduction to Management Science

Students also viewed these Business questions