Essay
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. 
Required:
a.How many donuts of each type will be sold at the breakeven 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?
Correct Answer:
Verified
a.$216,000 ÷ [($.20 × 3) + ($.35 × 2) + ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q90: Assume total fixed costs of $160,000, variable
Q91: Morgan's Creations sells monogrammed baby blankets.The blankets
Q92: Knowing the breakeven point helps managers evaluate
Q93: Judy's Jewelry sells necklaces to retailers across
Q94: At the breakeven point,<br>A)sales revenue equals zero.<br>B)contribution
Q96: Sabrina Industries has conducted market research which
Q97: Sports Nation sells two types of soccer
Q98: Companies need to engage in target costing<br>A)at
Q99: Bivouac Camping Supply sells marine-grade hatches.The hatches
Q100: Lingh Suit Co.has received a shipment of