A Civic Organization Cooks and Serves Pancakes Once a Year

question 55

Short Answer

A civic organization cooks and serves pancakes once a year as a fundraiser and has done so for the past 25 years.The pancake grill size requires pancakes to be cooked in advance of the orders for them.All labor is donated,but the electricity and pancake supplies cost $0.20 per pancake.Each pancake sells for $0.60.From past records it appears that the distribution of pancake sales is approximately normal with a mean of 3000 and a standard deviation of 450.Cooked,but unsold pancakes are given to anyone who wishes to take them.Find the number of cooked pancakes that will yield the maximum profit for the project.
____________________ pancakes
Remove all commas from your answer before submitting.

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Definitions:

Variable Cost of Goods Sold

These are costs that fluctuate in direct proportion to changes in the level of production or sales volume, such as raw materials and direct labor.

Fixed Cost of Goods Sold

A portion of the cost of goods sold that remains constant, regardless of the level of production or sales.

Contribution Margin Format

A costing format that highlights the contribution margin, which is sales revenue minus variable costs, used in management accounting.

CVP Income Statement

A managerial accounting financial statement that utilizes cost-volume-profit analysis to show the effects of changes in cost and volume on a company's profits.