You are not ready to open a brick-and-mortar bakery but you think you can handle catering. You have received your first 4 orders. Use the following schedule todetermine how much of each raw material you need to use for each dozen cupcakes. It takes you 60 minutes to mix, bake, cool, and ice two dozen cupcakes and youpay yourself $15 per hour. You can only cook two dozen cupcakes at one time. You have also determined that your overhead per dozen is $2.75. You charge $17.00for each dozen.Selling Price perMaterialUnit sizePounds per dozenCost per pound$17Dozen CupcakesFlourpoundpound0.52.50Butter0.251.00Sugarpound0.52.00Eggsdozen0.172.00gallongallonpoundpoundMilk0.10.13.00Vanilla0.256.00Cocoa Powder0.254.00Vanilla IcingChocolate Icing0.751.50pound0.751.50Bakery boxeach10.50Job #1Job #2Job #3Job #4Four dozen chocolate cupcakes withchocolate icingOne dozen vanilla cupcakes withchocolate icingThree dozen chocolate cupcakes withvanilla icingTwo dozen vanilla cupcakes with whiteicing.MaterialFlourButterMaterialCostCostMaterialCostMaterialCostFlourButterSugarEggsMilkVanillaFlourFlourButterSugarEggsMilkCocoa PowderButterSugarEggsMilkSugarEggsMilkVanillaICocoa Powder

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You are not ready to open a brick-and-mortar bakery but you think you can handle catering. You have received your first 4 orders. Use the following schedule to determine how much of each raw material you need to use for each dozen cupcakes. It takes you 60 minutes to mix, bake, cool, and ice two dozen cupcakes and you pay yourself $15 per hour. You can only cook two dozen cupcakes at one time. You have also determined that your overhead per dozen is $2.75. You charge $17.00 for each dozen.

You are not ready to open a brick-and-mortar bakery but you think you can handle catering. You have received your first 4 orders. Use the following schedule to determine how much of each raw material you need to use for each dozen cupcakes. It takes you 60 minutes to mix, bake, cool, and ice two dozen cupcakes and you pay yourself $15 per hour. You can only cook two dozen cupcakes at one time. You have also determined that your overhead per dozen is $2.75. You charge $17.00 for each dozen.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6EB: Country Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the...

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Country Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the production of the boxed lunches. The costs to make the cookies are: A potential supplier has offered to sell Country Diner the cookies for $0.85 each. If the cookies are purchased, 10% of the fixed overhead could be avoided. If Jason accepts the offer, what will the effect on profit be?
Underground Food Store has 4,000 pounds of raw beef nearing its expiration date. Each pound has a cost of $450. The beef could be sold as is for $3.00 per pound to the dog food processing plant, or roasted and sold in the deli. The cost of roasting the beef will be $2.80 per pound, and each pound could be sold for $6.50. What should be done with the beef, and why?
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Mr. Ahmed works in a bakery which operates 6 days a week, 52 weeks a year. The bakery needs flour which is delivered to the bakery at 10 OMR each order. Each operational day, Mr. Ahmed needs 10 bags of four10 kg weight each bag Each bag costs OMR 12. The annual holding cost per bag is 15% of the purchase price of bag. If the shelf life of the flour bags is 2 weeks only, and Mr. Ahmed orders only accordingly to meet the demand for 2 weeks each order, then what will be the total variable cost per year ?
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You are going to open a business making custom cabinets. You can selleach cabinet for $80. It takes a cabinetmaker approximately 45 minutes tomake one cabinet. Each cabinetmaker works an 8-hour day earning $18 perhour. Each cabinet uses $25 in raw materials. You usually produce cabinets20 days a month and can employ two cabinetmakers. You estimate thatyour fixed costs are $5,000 per month.a. What is your contribution margin?b. How many cabinets must you make each month to break even?c. What is your total monthly revenue if you want to earn a $2,000 profit?d. Construct a break-even chart for the custom cabinet firm. Part D is neeeded
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