At Nick's Bakery,the Cost to Make Nick's Homemade Chocolate Cake

question 119

Multiple Choice

At Nick's Bakery,the cost to make Nick's homemade chocolate cake is $4 per cake.He sells four and receives a total of $24 worth of producer surplus.What is Nick selling his cakes for

• A)$2 each
• B)$7 each
• C)$8 each
• D)$10 each

---

Definitions:

Square Footage

Square Footage is a measurement of area used primarily in the United States to indicate the size of a space, such as a room, house, or building, measured in feet.

Production Departments

Specific areas or divisions within a manufacturing facility focused on producing particular goods or services.

Profit Centers

Divisions or units within a business that are responsible for generating revenue exceeding their costs, contributing to the company's profit.

Contribution to Overhead

The portion of sales revenue that exceeds direct costs, contributing towards covering the fixed costs of a business.