Business question-cvp analysis

Assignment Help Managerial Accounting
Reference no: EM1347390

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?

Reference no: EM1347390

Questions Cloud

Explain whole life insurance policy requires : Create a set of family situations where every insurance term and whole life insurance are the most suitable type of policy to meet the customer's needs.
Computing contribution margin-break even point : Determine the contribution margin for this practice. Determine the accounting break even point in the terms of number of Enrollees. Determine the economic break even point in terms of number of Enrollees.
Question about motivation theories : Show which of the following motivation theories would be most effective to motivate these employee groups and explain
Show capital structure theory : Help with is the formula and run down of the process to figure out this problem, the explicit answer is not necessary
Business question-cvp analysis : Gabby's Wedding Cakes creates elaborate wedding cakes. Calculate the break-even point for a month in units. How many cakes must be sold to earn a monthly profit of $10,000?
Creating presentation to law school class on digital crime : You have been asked to present a presentation to law school class on digital crime. After presentation, a student asks why so few people are really prosecuted for computer crime.
Weighted average cost of capital : Weighted average cost of capital - How does the capital asset pricing model help explain changing costs of capital?
Academic response to cvp analysis : Galaxy Disk's projected operating income for 2008 is $200,000, based on a sales volume of 200,000 units. Galaxy sells disks for $16 each. Variable costs consist of the $10 purchase price and a $2 shipping and handling cost. Galaxy's annual fixed c..
Calculation of standard deviation : The following are the historic returns for Chelle Computer Corporation. Determine the correlation coefficient between Chelle Computer and General Index and also calculate the standard deviation.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Which cost systems would companies use

Recognize which costing system - job order or process cost - the following companies would use:

  Determine the ending finished goods inventory

Determine the ending finished goods inventory. What was the cost of indirect labor? What was the amount of factory overhead applied? Determine total manufacturing costs incurred during 2007. What was the cost of good manufactured?

  Prepare photo artistry companys master budget

Prepare Photo Artistry Company's master budget for 2014 by completing the schedules Prepare a memo for Photo Artistry Company identifying issues that management should consider in order to improve the profitability of the company; provide some r..

  Cost volume profit analyses

After reviewing its cost structure (variable costs of £7.50 per unit and monthly fixed costs of £60,000) and its potential market, the Forecast Company established what it considered to be a reasonable selling price.

  Merits and demerits of standard costing

What are the advantages and disadvantages of standard costing in management accounting?

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Components of cost-volume-profit analysis

Describe the components of cost-volume-profit analysis. Employ cost-volume-profit analysis and break-even analysis to make business decisions.

  Evaluate net purchases at retail and net sales

Evaluate net purchases at retail and net sales for the month of September

  Concerns with segment reporting

Do you think that companies are worried about disclosing too much information if it comes to segment reporting? What's wrong with the reporting too much information? What do you think their main concerns include?

  Knowledge-activity based costing

City of Joseph Commercial Bank hired consultants to compute the costs of three products: checking accounts, personal loans, and the Gold visa card. The consultant identified the following activities, costs and activity drivers (annual data):

  Determine the cost of jobs

Evaluate the total cost of the work in process inventory on January 31. Determine the cost of jobs completed during January, and show the proper journal entry to reflect job completion.

  Prepare the journal entry to transfer the cost of job

Prepare the journal entry to transfer the cost of job #JK150 out of the work-in-process account at the end of November, What was the under-or over recovered overhead for the year?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd