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Author Question: Donnie's Donuts sells three types of donuts: sugar-glazed, cream-filled and giant-sized. The ... (Read 41 times)

Dannyrod2

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on: Feb 5, 2023
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.

TypeSales PriceVariable CostContribution Margin
Sugar-glazed$0.35$0.15$0.20
Cream-filled  0.55  0.20  0.35
Giant-sized  0.75  0.25  0.50

Required:

a.How many donuts of each type will be sold at the break-even 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?
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by Dannyrod2 on Feb 5, 2023

jamezpowell

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Reply #1 on: Feb 5, 2023
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Dannyrod2

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review

Animal_Goddess

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Reply 3 on: Yesterday
Wow, this really help

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