3-3 Breakeven analysis (LO 1) Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalizedbirthday cakes for a child's first birthday. The cakes, which sell for $40 and feature an edible picture of the child, areshipped throughout the country. A typical month's results are as follows:Sales revenueVariable expenses$840,000630,000Contribution margin210,000Fixed expenses112,000Operating income$ 98,000Requireda. What is FirstCakes' contribution margin per unit?b. What is FirstCakes' monthly breakeven point in units?e. What is FirstCakes' contribution margin ratio?d. What is FirstCakes' monthly breakeven point in sales dollars?

A break-even analysis is a financial calculation that weighs the costs of a new business, service or…

1) Julianna Abdallah owns and operates FirstCakes, 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 are as follows: Sales revenue $810,000 630,000 Variable expenses Contribution margin 210,000 Fixed expenses 112,000 Operating income $ 98,000 Required a. What is FirstCakes contribution margin per unit? b. What is FirstCakes' monthly breakeven point in units? e. What is FirstCakes' contribution margin ratio? d. What is FirstCakes monthly breakeven point in sales dollars?

1) Julianna Abdallah owns and operates FirstCakes, 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 are as follows: Sales revenue $810,000 630,000 Variable expenses Contribution margin 210,000 Fixed expenses 112,000 Operating income $ 98,000 Required a. What is FirstCakes contribution margin per unit? b. What is FirstCakes' monthly breakeven point in units? e. What is FirstCakes' contribution margin ratio? d. What is FirstCakes monthly breakeven point in sales dollars?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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