Question: Please answer the following question. Please provide any formulas or explanation needed. 3. Now, you are asked to look at the breakeven points for each
3. Now, you are asked to look at the breakeven points for each dessert pastry sold by using the contribution margin approach. Use the following information: (22 points) Donuts Cookies Cinnamon Rolls Slice of pie Sale price per unit $ 1.50 0.50 2.00 3.00 Variable cost per unit $ 0.60 0.15 0.95 $ 1.40 Total fixed cost $ 54.00 $ 35.00 S 73.50 $ 104.00 Target operating $ 1,000.00 $ 2,000.00 $ 2,500.00 3,000.00 income Calculate for each item: a. Contribution margin per unit b. Contribution margin ratio c. Breakeven points in units d. Breakeven point in sale dollars e. Units to achieve target operating income (round to the next whole unit) f. If the selling price for Donuts changes to $1.00, how will this affect the breakeven point in units for that item? (show calculations and explain)
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