Question: . A BAKERY store is supposed to bake 2 0 0 0 sets of CHOCOLATE CAKE and 4 0 0 0 sets of BROWN BREAD,

. A BAKERY store is supposed to bake 2000 sets of CHOCOLATE CAKE and 4000 sets of BROWN BREAD, on a weekly basis. The prices of the CAKE and BREAD are 50 and 15 Riyals per set, respectively. However, the Bakery can only batch out 1000 sets of either Cake or bread (or both; in total) on a daily basis. On regular shifts, (Sunday to Thursday), the variable expenditures associated with each set of items is 10 Riyals and FIXED COSTS for the weekly production is 1000 Riyals and 500 Riyals for weekend production (Friday and Saturday). Since, the Bakery operates on both Fridays and Saturdays, the variable weekend expenditures associated is 15 Riyals per set. Plan the production by calculating the appropriate breakeven volume. Complete the following table, afterwards. ALL CALCULATIONS MUST BE CLEARLY DISPALYED.
Production Bread/Cake Earnings Total Fixed Cost Variable Cost Total. Net Profit Cost Volume Earnings
Hint: Before the production starts on Sunday shift, 1000 Riyals of Fixed cost is paid as weekly down payment. Before the weekend shift (FRIDAY and SATURDAY) starts, 500 Riyals of fixed cost is deposited as weekend down payment.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!