Units sold = Sales revenue / Selling price per cake
= $784,000 / $64
= 12,250
Contribution margin per unit = Contribution margin / Units sold
= $196,000 / 12,250
= $16
Breakeven point = Fixed expense / Contribution margin per unit
= $124,640 / $16
= 7,790
Contribution margin ratio = Contribution margin per unit / Selling price per unit
= $16 / $64
= 25%
Breakeven point in sales dollars = Fixed cost / Contribution margin ratio
= $124,640 / 25%
= $498,560
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's...
Exercise 3-3 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 $646,080 Variable expenses 484,560 Contribution margin 161,520 Fixed expenses 100,920 $ 60,600 Operating income What is FirstCakes' contribution margin per unit? Contribution margin per unit $ per cake LINK TO TEXT LINK...
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...
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: Please show work Sales revenue $954,240 Variable expenses 715,680 Contribution margin 238,560 Fixed expenses 143,840 Operating income $ 94,720 What is FirstCakes’ contribution margin per unit? Contribution margin per unit $Enter contribution margin in dollars per...
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
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...
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 Variable expenses Contribution margin Fixed expenses Operating income $873,600 655,200 218,400 116,550 $ 101,850 (a) Your answer is correct. How many cakes will Julianna Abdallah have to sell if she wants to earn $120,060...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $50 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 $793,000 586.820 206,180 85,800 $ 120,380 ✓ Your answer is correct. How many cakes will Julianna Abdallah have to sell if she wants to earn $145,041...
3-3 Breakeven analysis (LO 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 $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 Required a. What is FirstCakes' contribution margin per unit? b. What is FirstCakes' monthly breakeven...
3-3 Breakeven analysis (LO 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 $40 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 $840,000 630,000 210,000 112,000 $ 98,000 Required a. What is FirstCakes' contribution margin per unit? b. What is FirstCakes' monthly breakeven...
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...