17) Managerial Financial Accounting Assignments AE4-11 Solution

# 17) Managerial Financial Accounting Assignments AE4-11 Solution

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AE4-11

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CVP Analysis [LO 3] Gabby's Wedding Cakes creates elaborate wedding cakes. Each cake sells for \$620. The variable cost of making the cakes is \$350, and the fixed cost per month is \$6,750. Calculate the break-even point for a month in units. 25 cakes AE4-11 The break-even point equals fixed cost divided by the contribution margin per unit.
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Unformatted text preview: Thus, the break-even point is 25 cakes [i.e., \$6,750 (\$620 - \$350) = 25 cakes]. How many cakes must be sold to earn a monthly profit of \$9,180? 59 cakes Click here if you would like to Show Work for this question AE4-11 The company must sell 59 cakes to earn a profit of \$9,180. (\$6,750 + \$9,180) (\$620 - \$350) = 59 cakes...
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## This note was uploaded on 06/21/2011 for the course MANAGERIAL MT425 taught by Professor Hodgson,k during the Spring '11 term at Kaplan University.

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17) Managerial Financial Accounting Assignments AE4-11 Solution

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