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.

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

Explanation:

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