Use this information to create the master budget

Recipe:

2 1/4 cups (281g) flour

1 tsp baking soda

1 tsp salt

1 cup (225g) butter

3/4 cup (150g) granulated sugar

3/4 cup (150g) brown sugar

2 large eggs

2 tsp vanilla extract

2 cups (340g) chocolate chips

Amount of ingredients required for one dozen cookies:

2 1/4 cups (281g) flour = 2.25 / 12 = 0.1875 cups or 22.625g per cookie

1 tsp baking soda = 1 / 12 = 0.0833 tsp per cookie

1 tsp salt = 1 / 12 = 0.0833 tsp per cookie

1 cup (225g) butter = 1 / 12 = 0.0833 cups or 20g per cookie

3/4 cup (150g) granulated sugar = 0.75 / 12 = 0.0625 cups or 15g per cookie

3/4 cup (150g) brown sugar = 0.75 / 12 = 0.0625 cups or 15g per cookie

2 large eggs = 2 / 12 = 0.1667 eggs per cookie

2 tsp vanilla extract = 2 / 12 = 0.1667 tsp per cookie

2 cups (340g) chocolate chips = 2 / 12 = 0.1667 cups or 28.333g per cookie

The number "12" is used because it represents one dozen, which is a commonly used unit for measuring the quantity of baked goods like cookies.

A. Total variable costs per dozen cookies:

Flour: 0.1875 cups x 0.60 QAR/cup = 0.1125 QAR

Sugar: 0.0625 cups x 0.60 QAR/cup = 0.0375 QAR

Eggs: 0.1667 x 0.40 QAR/egg = 0.0667 QAR

Butter: 0.0833 cups x 7.80 QAR/cup = 0.65 QAR

Chips/Nuts: 0.1667 cups x 4.90 QAR/cup = 0.8083 QAR

Manufacturing overhead (variable costs): 4.92 QAR

Operating expenses (variable costs): 2.36 QAR

Total variable costs per dozen cookies = 0.1125 + 0.0375 + 0.0667

B. Sales price per dozen cookies using markup on variable costs:

Flour: 0.60 QAR x (120 grams / 250 ML) = 0.36 QAR

Sugar: 0.60 QAR x (200 grams / 250 ML) = 0.48 QAR

Eggs: 0.40 QAR x 1 egg = 0.40 QAR

Butter/Oil: 7.80 QAR x (113 grams / 250 ML) = 4.31 QAR

Chips/Nuts: 4.90 QAR x (170 grams / 250 ML) = 2.74 QAR

Variable manufacturing overhead: 4.92 QAR

Operating expenses: 2.36 QAR

Total variable costs per dozen cookies: 0.36 + 0.48 + 0.40 + 4.31 + 2.74 + 4.92 + 2.36 = 15.57 QAR

Sales price per dozen cookies = Total variable costs per dozen cookie x (1 + Mark-up on total variable costs)

Sales price per dozen cookies = 15.57 QAR x (1 + 120%) = 34.19 QAR

C. Contribution margin per dozen cookies:

Sales price per dozen cookies = 34.19 QAR

Total variable costs per dozen cookies = 15.57 QAR

Contribution margin per dozen cookies = Sales price per dozen cookies - Total variable costs per dozen cookies

Contribution margin per dozen cookies = 34.19 QAR - 15.57 QAR = 18.62 QAR

So, the contribution margin per dozen cookies is 18.62 QAR.

D. Breakeven point for 1 fiscal quarter in dollars and in units:

Total fixed costs for manufacturing overhead = 19,683 QAR

Total fixed costs for operating expenses = 27,556 QAR

Total fixed costs = 19,683 + 27,556 = 47,239 QAR

Breakeven point in dollars = Total fixed costs / Contribution margin per dozen cookies

Breakeven point in dollars = 47,239 / 18.62 = 2524.32 QAR

Breakeven point in units = Total fixed costs / Contribution margin per unit

Breakeven point in units = 47,239 / 18.62 = 2524.32 dozens of cookies.

So, the breakeven point for 1 fiscal quarter is 2524.32 QAR or 2524.32 dozens of cookies.