Question: Pricing Problem Set 6. 10. Gloria is planning on opening a cake shop. She has found a location that rents for $13,229 per year and

Pricing Problem Set

6. 10. Gloria is planning on opening a cake shop. She has found a location that rents for $13,229 per year and it will cost her another $15,260 to furnish the shop and purchase all the necessary equipment. She plans on charging $18 for a cake and it will cost her $3 per cake for ingredients and $1.74 per cake for decorations and $2.22 per cake for the beautiful, colorful to-go boxes. What is the dollar breakeven point she will need to earn to cover her costs in the first year? Round to the nearest whole number. Kathy has recently opened a cake shop in a small town north of Sacramento. She has decided she wants to earn a salary of $41,390. Her rent is $28,548 per year. She plans on charging $33 for a cake because her costs are $6 per cake for ingredients and $5.75 per cake for decorations and $5.11 per cake for the beautiful, colorful to-go boxes. How number. Gloria has decided she can now afford to advertise. An advertising package would cost her $25,729 for one year. Assuming advertising is a fixed cost and her unit contribution is now $8.98, how many additional cakes would she need to sell to make the advertising package worthwhile? That is, how many additional cakes does she need to sell to pay for the advertising and breakeven?|Round to the nearest whole number. Stan is going to open a cupcake shop called Stan's Cupcakery in Montana. He found a great location that rents for only $5,455 per month. He will need to pay $22,954 to buy tables and chairs and all the necessary bakery equipment. He is going to price his cupcakes at $8 each. It will cost him $2.11 for ingredients and paper products for each cupcake sold. What is his unit contribution? Round to the nearest two decimals (0.00) Fran is very optimistic about her business. Her bakery in Redwood City is doing great. Her rent is $76,067 per year. Her shop is so popular she is going to price her cupcakes at $14 each. It will cost her $3.19 for ingredients and paper products for each cupcake sold. How many cupcakes will Fran need to sell to break even? Round to the nearest whole number

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