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Domino Bakery Has the Following Budget at 1,000,000 Dozen Donuts

Question 62

Essay

Domino Bakery has the following budget at 1,000,000 dozen donuts baked: Domino Bakery has the following budget at 1,000,000 dozen donuts baked:   (1) Compute the cost per dozen donuts at 1,000,000 dozen. (2) Develop the budget for 1,200,000 dozen donuts. (3) Compute the cost per dozen donuts at 1,200,000 dozen. (4) Explain why the difference in the cost per dozen occurs at the different levels of volume. (1) Compute the cost per dozen donuts at 1,000,000 dozen.
(2) Develop the budget for 1,200,000 dozen donuts.
(3) Compute the cost per dozen donuts at 1,200,000 dozen.
(4) Explain why the difference in the cost per dozen occurs at the different levels of volume.

Correct Answer:

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(1) Cost per dozen = $930,000/1,000,000 ...

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