Mary's Baked Creations Supplies Boxes of Home Baked Cookies to Grocery

question 13

Essay

Mary's Baked Creations supplies boxes of home baked cookies to grocery chains across Ontario. The company's annual fixed costs are $49,000. The sales price of each box of cookies averages $12, and it costs Mary $5 to make and deliver each box.
Required:
A. How many boxes of cookies must Mary sell in order to break even?
B. How many boxes sell to earn a target net profit of $35,000?
C. If budgeted sales total 10,000 boxes of cookies, how much is Mary's safety margin?
D. Mary's assistant manager, an accounting major, has suggested that the company should try to increase the contribution margin per box. Explain the meaning of "contribution margin" in layman's terms.

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Definitions:

Medicalization

The increasing influence of the medical profession in defining what is normal/healthy and abnormal/ill.

Diagnosed

The process of identifying a disease or condition by its signs, symptoms, and from the results of various diagnostic procedures.

Advances In Science

The progress and innovations in various scientific fields over time, contributing to knowledge and technology development.

Obesity

A state characterized by a BMI of 30 percent or more in an adult.