Becky's Bakery Sells Three Large Muffins for Every Two Small

question 106

Multiple Choice

Becky's Bakery sells three large muffins for every two small ones. A small muffin sells for $3, with a variable cost of $2.00. A large muffin sells for $5 with a variable cost of $2.50. Fixed costs are $3 000 per month. How much is the breakeven volume for each type of muffin?

• A)947 large, 632 small
• B)901 large, 622 small
• C)890 large, 524 small
• D)922 large, 687 small

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Definitions:

Primarily Liable

The entity or individual who holds the main responsibility for fulfilling an obligation or compensating for a loss.

Indorses

Acts of signing one's name on the back of a negotiable instrument, thereby transferring rights associated with the instrument to another party.

Negotiates

Engages in discussions aimed at reaching an agreement in situations involving varying interests.

Incomplete Note

A financial or promissory note missing essential details, making it unenforceable or incomplete until the information is furnished.