2. Patricia Johnson owns and operates CraneCakes, a bakery that creates personalized birthday cakes for a...

 

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2. Patricia Johnson owns and operates CraneCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $40 and feature an edible picture of the child, are shipped throughout the country. A typical month's results Total points available-6. are as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income $764,000 573,000 191,000 105,500 $ 85,500 How many cakes will Patricia Johnson have to sell if she wants to earn $136,000 in operating income each month? Assuming a 20% tax rate, how many cakes will Patricia Johnson have to sell if she wants to earn 113,200 in net income each month? (Round answer to 0 decimal places, e.g. 5,275.) 2. Patricia Johnson owns and operates CraneCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $40 and feature an edible picture of the child, are shipped throughout the country. A typical month's results Total points available-6. are as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income $764,000 573,000 191,000 105,500 $ 85,500 How many cakes will Patricia Johnson have to sell if she wants to earn $136,000 in operating income each month? Assuming a 20% tax rate, how many cakes will Patricia Johnson have to sell if she wants to earn 113,200 in net income each month? (Round answer to 0 decimal places, e.g. 5,275.)

Answer rating: 100% (QA)

Sales Revenue 764000 Divided By Selling Price Per cake 40 No of cake Sold ... View the full answer