Gobblecakes is a bakery that specialized in cupcake. The annual fixed cost to make cupcake is $18,000. The variable cost including ingredients and labor to make a cupcake is $0.9. the bakery sell a cupcake for $3.2 a piece. If the bakery sells 12,000 cupcakes annually, determine the total cost, total revenue, and profit.

Question

Conner Duncan

Business

7 July, 04:18

Gobblecakes is a bakery that specialized in cupcake. The annual fixed cost to make cupcake is $18,000. The variable cost including ingredients and labor to make a cupcake is $0.9. the bakery sell a cupcake for $3.2 a piece. If the bakery sells 12,000 cupcakes annually, determine the total cost, total revenue, and profit.

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Zaire Kaufman · Answer 1

Gobblecakes is a bakery that specialized in cupcake. The annual fixed cost to make cupcake is $18,000. The variable cost including ingredients and labor to make a cupcake is $0.9. the bakery sell a cupcake for $3.2 a piece. If the bakery sells 12,000 cupcakes annually, determine the total cost, total revenue, and profit.

Total cost = variable cost + fixed cost

TC = 0.9+18,000

TC = $18,000.90

Total revenue = price X quantity of goods

TR = 3.2 X 12000

TR = $38,400

Profit = TR-TC

Profit = $38,400-$18,000.9

profit = $20,399.10