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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 157 times)

melly21297

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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 variable costs per week are


◦ $600.
◦ $1,000.
◦ $2,600.
◦ $4,000.


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Marked as best answer by melly21297 on Apr 19, 2019

Koolkid240

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melly21297

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Reply 2 on: Apr 19, 2019
:D TYSM


matt95

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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