Oriole Cupcakes Co. is selling cupcakes for $10 for a box of one dozen. Oriole has fixed costs equaling $130800 per year, and its accounting firm has determined the contribution margin ratio on each box of donuts to be 50%. Oriole is currently averaging monthly sales of 2860 boxes of donuts, and the company has a tax rate of 25%. Based on this information, Oriole Cupcakes has been averaging monthly net income of O $2664 O $2300 O $2550 O $2529

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Oriole Cupcakes Co. is selling cupcakes for $10 for a box of one dozen. Oriole has fixed costs equaling $130800 per year, and its
accounting firm has determined the contribution margin ratio on each box of donuts to be 50%. Oriole is currently averaging monthly
sales of 2860 boxes of donuts, and the company has a tax rate of 25%. Based on this information, Oriole Cupcakes has been averaging
monthly net income of
O $2664
O $2300
O $2550
O $2529
Transcribed Image Text:Oriole Cupcakes Co. is selling cupcakes for $10 for a box of one dozen. Oriole has fixed costs equaling $130800 per year, and its accounting firm has determined the contribution margin ratio on each box of donuts to be 50%. Oriole is currently averaging monthly sales of 2860 boxes of donuts, and the company has a tax rate of 25%. Based on this information, Oriole Cupcakes has been averaging monthly net income of O $2664 O $2300 O $2550 O $2529
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