Gabbyrsquos wedding cakes creates elaborate wedding cakes, Financial Accounting

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Gabbyrsquos wedding cakes creates elaborate wedding cakes

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 $8,750.

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 $7,000?

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Financial Accounting: Gabbyrsquos wedding cakes creates elaborate wedding cakes

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