Question: David has decided to stop producing regular doughnuts and only produce premium doughnuts. The premium doughnuts have a higher profit margin and David believes he

David has decided to stop producing regular doughnuts and only produce premium doughnuts. The premium doughnuts have a higher profit margin and David believes he will need to sell less doughnuts to break even. The fixed costs of producing premium doughnuts is $1,115 per month. Materials including dough and icing cost for each doughnut is $.68 and direct labor is $1.25. Each doughnut sells for $4. Calculate how much revenue David's doughnut shop brings in each year before breaking even. (use the breakeven amount, do not round until the end --1 decimal place)

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 General Management Questions!