Donnie's Donut Shop sells cream-filled muffins for $1 each.Donnie's variable cost per muffin is $0.30 and total fixed costs are $2,000 per month.If Donnie wants to earn a monthly operating income of $5,000, how many muffins must he sell during the month?

Question

Quizplus · Accepted Answer

To find the number of muffins Donnie needs to sell, use the formula: (Fixed Costs + Desired Operating Income) / (Selling Price - Variable Cost). Plugging in the values: ($2,000 + $5,000) / ($1 - $0.30) = 10,000 muffins.

Donnie's Donut Shop Sells Cream-Filled Muffins for $1 Each