$6$ Homework $1$

Cove's Cakes is a local bakery. Price and cost information follows:

Price per cake

Variable cost per cake

Ingredients

Direct labor

Overhead $($box$,$ etc.$)$

Fixed costs per month

$$13\mathrm{.}71$

$2\mathrm{.}31$

$1\mathrm{.}11$

$0\mathrm{.}14$

$4,466\mathrm{.}00$

Required:

Determine Cove's break$-$even point in units and sales dollars.

Determine the bakery's margin of safety in sales dollars if it currently sells $480$ cakes per month.

Determine the number of cakes that Cove must sell to generate $$1,800$ in profit.

Complete this question by entering your answers in the tabs below.

Required $1$

Determine Cove's break$-$even point in units and sales dollars.

Note: Round your Break$-$Even Units answer to the nearest whole number. Round your other intermediate calcul sales dollars answer to $2$ decimal places.

$\backslash$table$[[$Break$-$Even Units,Cakes$],[$Break$-$Even Sales Dollars,$]]$