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# Homework+File+3+Week+3 - Heaters are sold for \$20 each. The...

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Breakeven Questions 7 San Diego Cake Store manufactures the finest Red Velvet Cakes in the world. The Cakes are each sold for \$45. Variable costs are 65% of Sales and Fixed Costs are \$405,000. How many Red Velvet Cakes must San Diego Cake Store sell in order to break even? 8 ACME heating company expects to make \$40,000 in earnngs after taxes (EAT) with Sales of \$400,000.
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Unformatted text preview: Heaters are sold for \$20 each. The Variable Cost per heater is \$10 and ACME pays 35% taxes. 8.1 What are ACME's Fixed Costs expected to be next year? 8.2 Calculate ACME's Break even number of heaters in units and dollars....
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## This note was uploaded on 01/10/2012 for the course FINANCE 370 taught by Professor Jones during the Winter '08 term at University of Phoenix.

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