An intern at the bakery is tasked with creating profitability information for a new specialty cake. To create this new product, the bakery needs to rent a special oven the oven, costing $ $500$ month. Not including direct labor. No other bakery in the area is currently creating these cakes, so the bakery manager feels confident that there is a market for them. The intern, however, is not confident with her CVP skills. Still, she tries. She calculates the following monthly profit projection, based on an assumption of selling $40$ specialty cakes in a month at a selling price of $$30$ each.

Required

a$.$ What aspects of the intern's work, if any, did she do correctly?

b$.$ What aspects of her projection are incorrect, if any? If there are any errors, please explain and correct them in order to show an accurate projection.

c$.$ The intern presented her corrected projection from part $($b$)$ to the manager of the bakery. Given this new information, does it look like this cake would be a good addition to the bakery? What additional considerations should the manager make before moving ahead with this product addition?