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Exercise 4-11 CVP Analysis

Exercise 4-11 CVP Analysis
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ACCOUNTING

MT425 / MT 425
Managerial Finance and Accounting
Kaplan University (KU Campus)

James Jiambalvo
Managerial Accounting, 4e
Hoboken, NJ: John Wiley & Sons.

Unit 4: Cost Measurement for Management

Chapter 4 Exercise 4-11 CVP Analysis [LO 3] 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.

Required
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?

 

FILE: MS WORD

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