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Krab Kakes has a selling price of $5 per cake, a variable cost of $1.50 per cake, and a total fixed cost of $3,000. In January, they sold 1,750 cakes. How much does each cake contribute to paying for fixed expenses and generating profit? a. $3.21 b. $1.50 c. $5 d. $3.50

Krab Kakes has a selling price of $5 per cake, a variable cost of $1.50 per cake, and a total fixed cost of $3,000. In January, they sold 1,750 cakes. How much does each cake contribute to paying for fixed expenses and generating profit? a. $3.21 b. $1.50 c. $5 d. $3.50

FINANCIAL ACCOUNTING
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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Krab Kakes has a selling price of $5 per cake, a variable cost of $1.50 per cake, and a total fixed cost of $3,000. In January, they sold 1,750 cakes. How much does each cake contribute to paying for fixed expenses and generating profit? a. $3.21 b. $1.50 c. $5 d. $3.50
Transcribed Image Text:Krab Kakes has a selling price of $5 per cake, a variable cost of $1.50 per cake, and a total fixed cost of $3,000. In January, they sold 1,750 cakes. How much does each cake contribute to paying for fixed expenses and generating profit? a. $3.21 b. $1.50 c. $5 d. $3.50
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