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Cake Boss Wedding Cakes Are Currently Made in a Process-Focused

Question 74

Short Answer

Cake Boss wedding cakes are currently made in a process-focused shop, where fixed costs are $8,000 per month and variable cost is $150 per unit. The bakery sells the cakes for an average of $500 per unit. What is the break-even point for this operation? What is the profit (or loss) on a demand of 100 units per month?

Correct Answer:

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BEP is where TR = TC.
TR = 500Q TC = 800...

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