Provide answer general accounting Sweet Dreams Bakery specializes in premium cookies, sellingthem for $4.75 each. In November, they produced 2,800 cookiesbut sold only 2,400 units. The variable cost per cookie is $2.50,and they pay a sales commission of $0.35 per cookie. The totalfixed manufacturing costs were $2,100, and total fixedmarketing and administrative costs were $1,600. What is theproduct cost per cookie under absorption costing?A. $3.25B. $4.75C. $3.25D. $5.10

Step 1: Identify the variable cost per cookieStep 2: Identify the total fixed manufacturing…

Answered: Sweet Dreams Bakery specializes in…

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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Chloe’s Cafe bakes croissants that it sells to local restaurants and grocery stores. The average costs to bake the croissants are $0.70 for 2,600 and $0.65 for 5,200, If the total cost function for croissants is linear, what will be the average cost to bake 4,400?
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