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26 June, 13:00

Gobblecakes is a bakery that specialized in cupcake. The annual fixed cost to make cupcake is $18,000. The variable cost including ingredients and labor to make a cupcake is $0.9. the bakery sell a cupcake for $3.2 a piece. If the bakery sells 12,000 cupcakes annually, determine the total cost, total revenue, and profit.

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  1. 26 June, 14:36
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    Gobblecakes is a bakery that specialized in cupcake. The annual fixed cost to make cupcake is $18,000. The variable cost including ingredients and labor to make a cupcake is $0.9. the bakery sell a cupcake for $3.2 a piece. If the bakery sells 12,000 cupcakes annually, determine the total cost, total revenue, and profit.

    Total cost = variable cost + fixed cost

    TC = 0.9+18,000

    TC = $18,000.90

    Total revenue = price X quantity of goods

    TR = 3.2 X 12000

    TR = $38,400

    Profit = TR-TC

    Profit = $38,400-$18,000.9

    profit = $20,399.10
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