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Author Question: Refer to Scenario 9.8 below to answer the question(s) that follow. SCENARIO 9.8: Investors put up ... (Read 180 times)

meagbuch

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on: Apr 19, 2019

Refer to Scenario 9.8 below to answer the question(s) that follow. 



SCENARIO 9.8: Investors put up $1,040,000 to construct a building and purchase all equipment for a new gourmet cupcake bakery. The investors expect to earn a minimum return of 10 per cent on their investment. The bakery is open 52 weeks per year and sells 900 cupcakes per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The bakery charges $8 on average per cupcake.





Refer to Scenario 9.8. Total fixed costs per week are


◦ $1,000.
◦ $2,000.
◦ $3,000.
◦ $4,000.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by meagbuch on Apr 19, 2019

mathjasmine

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Reply #1 on: Apr 19, 2019
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meagbuch

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Reply #2 on: Apr 19, 2019
Thanks


mathjasmine

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Reply #3 on: Apr 19, 2019
Welcome :)


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