Give true answer the accounting question ❓ A bakery sells its pies for $6.00 each. The bakery incurs a daily fixed cost of $300which includes salaries and rental. The variable cost per pie is $2.50. Based on pastdemand, the bakery anticipates that they will sell 100 pies a day. What profit will thebakery earn?

Step 1: Define ProfitA firm must make a profit in the long run, or it will have to exit the…

Answered: A bakery sells its pies for $6.00 each.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A bakery sells its pies for $6.00 each. The bakery incurs a daily fixed cost of $300 which includes salaries and rental. The variable cost per pie is $2.50. Based on past demand, the bakery anticipates that they will sell 100 pies a day. What profit will the bakery earn?