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A bakery produces two types of cakes, a round cake and a heart-shaped cake. Total fixed costs for the firm are 592,000. Variable costs and sales data for these cakes are presented below.
Round Cake Heart-shaped Cake
Selling price per unit 512 $20Vanable cost per unit 58 515Budgeted sales (units) 10.000 15.000
Question 1: How many cakes will be required to reach the breakeven point?
A. 8.000 round cakes and 12,000 heart-shaped cakes.
B. 10.000 round cakes and 10,000 heart-shaped cakes.
C. 9.000 round cakes and 11,000 heart-shaped cakes.
D. 23.000 round cakes and 18.400 heart-shaped cakes
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