Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $64 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses $994,560 745,920 Contribution margin 248,640 Fixed expenses Operating income 132,800 $115,840 How many cakes will Julianna Abdallah have to sell if she wants to earn $131,568 in operating income each month?
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $64 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses $994,560 745,920 Contribution margin 248,640 Fixed expenses Operating income 132,800 $115,840 How many cakes will Julianna Abdallah have to sell if she wants to earn $131,568 in operating income each month?
Chapter6: Business Expenses
Section: Chapter Questions
Problem 37P
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Provide correct answer general accounting
Transcribed Image Text:Julianna Abdallah owns and operates FirstCakes, a bakery that
creates personalized birthday cakes for a child's first birthday.
The cakes, which sell for $64 and feature an edible picture of
the child, are shipped throughout the country. A typical
month's results are as follows:
Sales revenue
Variable expenses
$994,560
745,920
Contribution margin 248,640
Fixed expenses
Operating income
132,800
$115,840
How many cakes will Julianna Abdallah have to sell if she
wants to earn $131,568 in operating income each month?
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