We appreciate your visit to Cove s Cakes is a local bakery The price per cake is 20 and the variable cost per cake including ingredients and direct labor is. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
Final answer:
The correct option is (a) $10. Cove's Cakes' contribution margin per cake is $10, which is found by subtracting the variable cost per cake from the selling price per cake.
Explanation:
The correct option is (a) $10. The student asked about the contribution margin per cake for Cove's Cakes, which is a local bakery. The contribution margin per unit can be calculated by subtracting the variable costs from the selling price. In this case, the price per cake is $20, and the variable cost per cake is $10. Therefore, the contribution margin is $20 - $10, which equals $10 per cake.
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