Specialty Cakes Inc

Multiple Choice

Specialty Cakes Inc. produces two types of cakes, a 2-pound round cake and a 3-pound heart-shaped cake. Total fixed costs for the firm are $94,000. Variable costs and sales data for the two types of cakes are presented below.
If the product sales mix were to change to three heart-shaped cakes for each round cake, the breakeven volume for each of these products would be:

A) 8,174 round cakes, 12,261 heart-shaped cakes.
B) 12,261 round cakes, 8,174 heart-shaped cakes.
C) 4,947 round cakes, 14,842 heart-shaped cakes.
D) 15,326 round cakes, 8,109 heart-shaped cakes.