A bakery produces regular bread and muffin
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A bakery produces regular bread and muffin

2. A bakery produces regular bread and muffin. Last month, it sold 1200 bread and 600 muffins and intends to keep the sales mix that way.  Its  monthly fixed costs include br. 1200 for rent, br. 300 for salary..

 

Regular Bread

Mufffin

Unit selling prices

1.2

1.5

Unit cont. margin

0.25

0.3

a. What quantity of bread and muffin must be sold monthly to break even? 

b. What quantities bread and muffin must be sold to generate a monthly operating income of $600 per month?

Hint
Accounts & Finance 2b)What Is Operating Income? Operating income is a bookkeeping figure that actions how much benefit acknowledged from a business' tasks, in the wake of deducting working costs like wages, devaluation, and cost of merchandise sold (COGS)....
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