Sweet Bakery sells pastries and cupcakes. Usually, for every three pastries they sell one cupcake (which...

Sweet Bakery sells pastries and cupcakes. Usually, for every three pastries they sell one cupcake (which means, pastries : cupcake = 3:1). Each pastry has an BDT80 contribution margin, and each cupcake has a BDT60 contribution margin. Sweet Bakery’s fixed costs are BDT180,000 per month. The selling prices of pastries and cupcakes, respectively, are BDT300 and BDT150. The business is subjected to a 40 percent income tax rate.

1. How much revenue is needed to earn a pre-tax profit of BDT150,000?

2. How much revenue is needed to earn an after-tax profit of BDT150,000?

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Expert Solution

ekkarill92 answered 1 year ago

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