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Chapter 3 Post-Quiz

# Chapter 3 Post-Quiz - Deb’s Merchandising has the...

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Pedro Cakes expects to sell 3,000 cakes a month. He estimated the following monthly costs Variable Costs \$ 7,500 Fixed costs \$15,000 1. What sales price per cake does he need to achieve to begin making a profit if he sells the estimated monthly amount of cakes? \$7.50 \$7.50 \$5.00 \$2.50 2. In his first month of operation Pedro achieves \$24,000 in sales by selling 3,000 cakes. What is his break-even sales dollars? \$48,000 \$22,500 \$21,819 \$22,818 24,000/3,000 = \$8/unit – 2.50 = 5.50 CM/unit 15,000/\$5.50 = 2,727.27 units * 8 =
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Unformatted text preview: Deb’s Merchandising has the following information: Material cost per unit 24 Transportation-in (per case of 100 units) 300 Advertising 50,000 Rent 20,000 Salaries 80,000 3. Deb wants to sell her boondoggle keychains with a mark0up of 60% of her variable product cost. What is the recommended selling price \$38.40 \$43.20 \$518.40 \$24.00 4. With a selling price of \$48/unit how many boondoggle keychains does Deb have to sellin order not to suffer a loss 7,143 3,125 5,555 5,143...
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