Reference no: EM132629513
The owner of a pastry shop is considering whether to spend $ 12,000 to purchase a new oven to bake a new type of cup cake, which she could then sell for $12 each. Per-unit variable cost would be $6
A) What would the profit be if she were to produce and sell 3,500 piece cup cakes?
B) How many cup-cakes would she have to produce and sell in order to break even
C) How many cup cakes would she have to produce and sell in order to make a profit of $6,000?
D) If her available oven has design and effective capacities of 6,000 and 4,000 piece cup cake per year respectively, and she plans to bake 2,400 piece cup cakes each year in this machine, what will be the utilization of this oven?
E) If her available oven has design and effective capacities of 6,000 and 4,000 piece cup cakes per year, respectively, and she expects to be 80% efficient in her use of this oven, how many cup cakes does she plan to bake each year in this oven?