2. If the cost of sales is higher than the revenue generated then however high the sales...
Question:
2. If the cost of sales is higher than the revenue generated then however high the sales volumes are, there will be a net loss incurred by the bakery and this is the case that has taken place for the bakery during the current months. And there are high possibilities that could result in the bakery having a net loss for the month.
the fixed costs might not have been considered while calculating the price of the products to be sold in the bakery which could've also led to the net loss in the morning for the bakery.
The cost of sales for the current month has not been properly considered and unknowingly for every additional sale in the bakery, it has lost money due to the cost of sales being more than the revenue generated per unit itself indicating a negative margin being fixed unknowingly.
College Algebra Graphs and Models
ISBN: 978-0321845405
5th edition
Authors: Marvin L. Bittinger, Judith A. Beecher, David J. Ellenbogen, Judith A. Penna