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4) Gobble cakes is a bakery that specializes in cupcakes. The annual fixed cost to make cupcakes is $18,000. The variable cost including ingredients and labour to make a cupcake is

$0.90. The bakery sells cupcakes for $3.20 apiece. If the bakery sells 12,000 cupcakes annually, determine the total cost, total revenue, and profit. How many cupcakes will the bakery need to sell to break even?

Fig: 1