FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Julianna Abdallah owns and operates FirstCakes, 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 |
$840,000
|
Variable expenses |
630,000
|
Contribution margin |
210,000
|
Fixed expenses |
112,000
|
Operating income |
$ 98,000
|
a.What is FirstCakes' contribution margin per unit?
b.What is FirstCakes' monthly breakeven point in units?
c.What is FirstCakes' contribution margin ratio?
d.What is FirstCakes' monthly breakeven point in sales dollars?
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