1. Muy Bueno Bakery sells three different products. Currently they are not able to meet all of their customers' demand. Using the following information, determine the price of the cake needed to meet the same contribution margin as the cookies.

a. $45

b. $36

c. $42

d. $30

2. Rumba Dance Hall is considering offering a wedding reception package that includes the ballroom rental, decorations, a wedding cake, punch, and paper goods for $6,000. Currently, the company is renting the ballroom with no extras at $4,500. The extras will cost $800. Determine if the new package is profitable and by how much.

a. increases profits by $800.

b. decreases profits by $800.

c. cannot be determined from the information given.

d. increases profits by $700.

Answer rating: 100% (QA)

1 b 36 Price contribution required ... View the full answer