Problem: Ana and Maria decide to open a bagel shop. When they do the calculation, they found out that if they buy from the local bakery they will need airtight containers at a fixed cost of P5000 annually. They can buy the bagels for P2 each. If they make the bagels in-house they will need a small kitchen at a fixed cost of P5500 annually. It will cost them $1 per bagel to make. Question: 1. How many bagels do they need to sell to have? Show your solution thank you!

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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Problem:
Ana and Maria decide to open a bagel shop. When they do the calculation, they found out that if they buy from the local bakery they will need airtight containers at a fixed cost of P5000 annually. They can buy the bagels for P2 each. If they make the bagels in-house they will need a small kitchen at a fixed cost of P5500 annually. It will cost them $1 per bagel to make.

Question:

1. How many bagels do they need to sell to have? Show your solution thank you!

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