Crane’s Bakery sells strawberry cakes for $15 each. Last mon…
Crane’s Bakery sells strawberry cakes for $15 each. Last month Brandi sold 1420 cakes. Variable costs were $10 per cake and fixed costs totaled $3780. This month, Crane has decided to spend $1260 to sponsor a team for a Relay for Life golf tournament. She believes that the additional advertising from the sponsorship will generate 10% more sales than last month. What will be this month’s operating income?