without explanation

Mini Case Study Tracy Chen began dabbling in pastry making several years ago as a hobby. Her pastry is quite creative, and it has been so popular with friends and others that she has decided to quit her job with a travel agency and prepare pastry full-time. She will be giving up her salary from the travel agency, a steady $2,000 per month. Ms. Chen has found a small building near her former employer to rent for her pastry shop at $400 per month. She estimates that for all her specially selected pastries, the ingredient cost will be $0.50 per finished piece. She plans to hire workers to produce the pastries at a labor rate of $7.50 per hour, and it will take 8 hours to produce 12 dozen sets of ten assorted pastries. The retail selling price for each pastry is $2.50 Ms. Chen already owns the production equipment, which she purchased several years ago. A phone installed in the shop for taking orders will cost $20 per month. In addition, a recording device will be attached to the phone for taking after-hours messages. The phone company will charge Ms. Chen $0.40 for each message recorded. Ms Chen has some money in savings that is earning interest of $5,000 per year. These savings will be withdrawn and used to get the business going. For the time being, Ms. Chen does not intend to draw any salary for herself What is the contribution margin of a dozen pastry sold in retail? $28 $12 $20 $24 If Tracy sold 12 dozen sets of pastry (in retail prices) for 100 customers during the month of August, considering her Total Fixed Costs of $730, what is unit of sales required to reach break-even? O $321.19 $268.11 $256.14 $253.38