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Brandi's Bakery Sells Strawberry Cakes for $15 Each

Question 55

Multiple Choice

Brandi's Bakery sells strawberry cakes for $15 each.Last month Brandi sold 1,200 cakes.Variable costs were $5 per cake and fixed costs totaled $3,000.This month, Brandi has decided to spend $1,000 to sponsor a team for a Relay for Life golf tournament.She believes that the additional advertising from the sponsorship will generate 10% more sales than last month.What will be this month's operating income?


A) $8,000
B) $9,000
C) $9,200
D) $10,200

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