Julianna Abdallah owns and operates FirstCakes, a bakery that
creates personalized birthday cakes for a child’s first birthday.
The cakes, which sell for $56 and feature an edible picture of the
child, are shipped throughout the country. A typical month’s
results are as follows:
Sales revenue | $866,320 | |
Variable expenses | 649,740 | |
Contribution margin | 216,580 | |
Fixed expenses | 102,620 | |
Operating income | $ 113,960 |
Assuming a 25% tax rate, how many cakes will Julianna Abdallah
have to sell if she wants to earn $161,700 in net income each
month? (Round answer to 0 decimal places, e.g.
5,275.)
No of units = 866,320/56 = 15,470
Contribution margin per unit = 216,580/15,470 = 14
Target profit = 161,700/(100-25)% = 215,600
Sales needed
= (Fixed costs +Target profit) /Contribution margin per unit
= (102,620+215,600)/14
= 22,730
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s first birthday. The cakes, which sell for $56 and feature an edible picture of the child, are shipped throughout the country. A typical month’s results are as follows: Sales revenue $866,320 Variable expenses 649,740 Contribution margin 216,580 Fixed expenses 102,620 Operating income $ 113,960 Assuming a 25% tax rate, how many cakes will Julianna Abdallah have to sell if she wants to earn $161,700...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s first birthday. The cakes, which sell for $56 and feature an edible picture of the child, are shipped throughout the country. A typical month’s results are as follows: Sales revenue $866,320 Variable expenses 649,740 Contribution margin 216,580 Fixed expenses 102,620 Operating income $ 113,960 (a) New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect....
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s first birthday. The cakes, which sell for $48 and feature an edible picture of the child, are shipped throughout the country. A typical month’s results are as follows: Sales revenue $840,480 Variable expenses 630,360 Contribution margin 210,120 Fixed expenses 112,200 Operating income $ 97,920 Assuming a 30% tax rate, how many cakes will Julianna Abdallah have to sell if she wants to earn $114,660...
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) Assuming a 30% tax rate, how many cakes will Julianna Abdallah have to sell if she wants to earn...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s first birthday. The cakes, which sell for $60 and feature an edible picture of the child, are shipped throughout the country. A typical month’s results are as follows: Sales revenue $1,005,600 Variable expenses 754,200 Contribution margin 251,400 Fixed expenses 107,400 Operating income $ 144,000 Assuming a 30% tax rate, how many cakes will Julianna Abdallah have to sell if she wants to earn $98,280...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s first birthday. The cakes, which sell for $48 and feature an edible picture of the child, are shipped throughout the country. A typical month’s results are as follows: Sales revenue $840,480 Variable expenses 630,360 Contribution margin 210,120 Fixed expenses 112,200 Operating income $ 97,920 (a) Your Answer Correct Answer (Used) How many cakes will Julianna Abdallah have to sell if she wants to earn...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s first birthday. The cakes, which sell for $56 and feature an edible picture of the child, are shipped throughout the country. A typical month’s results are as follows: Sales revenue $944,720 Variable expenses 708,540 Contribution margin 236,180 Fixed expenses 123,620 Operating income $ 112,560 A. What is FirstCakes’ contribution margin per unit? Contributing Margin per unit $_____ per cake B. What is FirstCakes’ monthly...
Question 2 Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $56 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses Contribution margin $749,280 561,960 187,320 133,000 $ 54,320 Fixed expenses Operating income (a) X Your answer is incorrect. Try again. How many cakes will Julianna Abdallah have to sell if...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $64 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income $994,560 745,920 248,640 132,800 $ 115,840 (a) How many cakes will Julianna Abdallah have to sell if she wants to earn $131,568 in operating income each...
Question 1 Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $52 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income $719,680 539,760 179,920 97,370 $ 82,550 (a) What is FirstCakes' contribution margin per unit? Contribution margin per unit $ per cake