Asher Hyatt owns and operates BabyCakes, a bakery that creates personalized birthday cakes for a child's first

Question:

Asher Hyatt owns and operates BabyCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for
$56 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows:
Sales revenue ........... $840,000
Variable expenses........ 630,000
..... 210,000
Fixed expenses......... 112,000
Operating income........ $ 98,000

Required
a. What is BabyCakes' per unit?
b. What is BabyCakes' monthly breakeven point in units?
c. What is BabyCakes' ratio?
d. What is BabyCakes' monthly breakeven point in sales dollars?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...