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A Bakery Sells Its Pies for $6

question 32

Essay

A bakery sells its pies for $6.00 each.The bakery incurs a daily fixed cost of $500 which includes salaries and rental.The variable cost per pie is $2.50.Set up this problem in Excel as shown below to compute the number of pies (X)that must be baked daily in order to break even.Model the problem mathematically without using Goal Seek.
A bakery sells its pies for $6.00 each.The bakery incurs a daily fixed cost of $500 which includes salaries and rental.The variable cost per pie is $2.50.Set up this problem in Excel as shown below to compute the number of pies (X)that must be baked daily in order to break even.Model the problem mathematically without using Goal Seek.

Definitions:

Cash Flow

The aggregate measure of capital movement into and from a business, significantly affecting its solvency.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of maximization of shareholder wealth.

Income Tax Expense

The cost incurred by businesses and individuals due to earnings, computed based on tax rates and laws.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of wealth maximization.