Mary Smith owns and operates BlossomCakes, 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 $760,000 Variable expenses 570,000 Contribution margin 190,000 Fixed expenses 105,000 Operating income $ 85,000
Mary Smith owns and operates BlossomCakes, 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 $760,000 Variable expenses 570,000 Contribution margin 190,000 Fixed expenses 105,000 Operating income $ 85,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Assuming a 25% tax rate, how many cakes will Mary Smith have to sell if she wants to earn $113,100 in net income each month?
(Round answer to 0 decimal places, e.g. 5,275.)
cakes

Transcribed Image Text:Mary Smith owns and operates BlossomCakes, 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
$760,000
Variable expenses
570,000
Contribution margin
190,000
Fixed expenses
105,000
Operating income
$85,000
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