Answers
Answer
- All working forms part of the answer
- Requitrement 1
A | Price per cake | $ 14.71 | |
B | Total variable cost per cake | $ 3.52 | |
C = A - B | Contribution margin per cake | $ 11.19 | |
D | Fixed Cost | $ 5,147.40 | |
E = C/D | Break Even Units | 460 | Answer |
F = E x A | Break Even Sales Dollars | $ 6,766.60 | Answer |
- Requirement 2
A | Sold Units | 540 | |
B | Break Even Units | 460 | |
C = A - B | Margin of Safety Units | 80 | |
D = C x 14.71] | Margin of Safety | $ 1,176.80 | Answer |
- Requirement 3
A | Target Profits | $ 1,900.00 | |
B | Fixed Cost | $ 5,147.40 | |
C = A+B | Total Contribution margin required | $ 7,047.40 | |
D | Contribution margin per cake | $ 11.19 | |
E = C/D | Target Sales Units | 630 | Answer |
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