Managerial Accounting: E4-11 Gabby's Wedding Cakes creates elaborate wedding cakes

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Managerial Accounting
EXERCISE 4-11. CVP Analysis
Gabby's Wedding Cakes creates elaborate wedding cakes. Each cake sells for $600. The variable cost of making the cakes is $250, and the fixed cost per month is $7,700.

a. Calculate the break-even point for a month in units.
b. How many cakes must be sold to earn a monthly profit of $10,000?
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