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aznhermit101 aznhermit101
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A year ago
Donnie's Donuts sells three types of donuts: sugar-glazed, cream-filled and giant-sized. The following table shows the sales price and variable cost for each type. Donnie's incurs $216,000 a year in fixed costs. Assume that the store has a sales mix of three sugar-glazed, two cream-filled, and one giant-sized.

TypeSales PriceVariable CostContribution Margin
Sugar-glazed$0.35$0.15$0.20
Cream-filled  0.55  0.20  0.35
Giant-sized  0.75  0.25  0.50

Required:

a.How many donuts of each type will be sold at the break-even point?
b.What amount of revenue would need to be generated by each type of donut
for the company to earn $36,000 in operating income?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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sbe0921sbe0921
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A year ago
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aznhermit101 Author
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A year ago
Thanks
missnoname
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Yesterday
Smart ... Thanks!
TAT1238
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2 hours ago
This helped my grade so much Perfect
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