Please help me with correct answer thanku Prairie Fields Bakery is a bakery specializing in pies. They are exploring options for expanding their product line by baking and sellingcakes. The sale price for each cake will be $15. The following cost information has been provided:Variable Costs:Direct MaterialsDirect LaborFixed Costs:Administrative CostsUtilitiesRent$3.40$1.50$2,540$350$1,200 You are a cost accountant for Prairie Fields Bakery, and you would like to analyze the cost-volume-profit for the proposed cake line.You will present your analysis to management. Your approach is to create a dashboard with the following visualizations:1.2.3.4.5.Contribution Margin per Unit - This is a pie chart showing the contribution margin per unit as a pie slice and the total variablecost per unit as another pie slice. The total sales price per unit is also displayed in the center.Variable Costs per Unit - This is a pie chart showing the direct labor per unit as a pie slice and the direct materials per unit asanother pie slice. The total variable costs per unit is shown in the center.Total Fixed Costs - This is a pie chart showing the administrative, utilities and rent costs as pie slices. The total fixed costsvalue is shown in the center.Operating Income by Sales Unit - This is a bar chart showing the operating income for sales units from 0 to 1000 (inincrements of 100).Cost-Volume-Profit Graph - This is a line chart showing the total revenue, total fixed costs, and total costs for sales units from0 to 1000 (in increments of 100).(a2) What is the margin of safety in units and sales dollars if 800 cakes are sold?Margin of safety in unitsMargin of safety in dollars $eTextbook and Media395.055925.74unitsAssistance Used

Magin of safety refers to the cushion available to a business above a point below which if the sales…

Prairie Fields Bakery is a bakery specializing in pies. They are exploring options for expanding their product line by baking and selling cakes. The sale price for each cake will be $15. The following cost information has been provided: Variable Costs: Direct Materials Direct Labor Fixed Costs: Administrative Costs Utilities Rent $3.40 $1.50 $2,540 $350 $1,200

Prairie Fields Bakery is a bakery specializing in pies. They are exploring options for expanding their product line by baking and selling cakes. The sale price for each cake will be $15. The following cost information has been provided: Variable Costs: Direct Materials Direct Labor Fixed Costs: Administrative Costs Utilities Rent $3.40 $1.50 $2,540 $350 $1,200

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 3PB: A local picnic table manufacturer has budgeted the following overhead costs: They are considering...

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