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 sets of CHOCOLATE CAKE and sets of BROWN BREAD, on a weekly basis. The prices of the CAKE and BREAD are and Riyals per set, respectively. However, the Bakery can only batch out 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 Riyals and FIXED COSTS for the weekly production is Riyals and Riyals for weekend production Friday and Saturday Since, the Bakery operates on both Fridays and Saturdays, the variable weekend expenditures associated is Riyals per set. Plan the production by calculating the appropriate breakeven volume. Complete the following table, afterwards. ALL CALCULATIONS MUST BE CLEARLY DISPALYED.
Production BreadCake Earnings Total Fixed Cost Variable Cost Total. Net Profit Cost Volume Earnings
Hint: Before the production starts on Sunday shift, Riyals of Fixed cost is paid as weekly down payment. Before the weekend shift FRIDAY and SATURDAY starts, 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
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
