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Corys Cakes is a local bakery. Price and cost information follows: Price per cake $ 17.00 Variable cost per cake Ingredients 2.50 Direct labor 1.40
Corys Cakes is a local bakery. Price and cost information follows:
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| Price per cake | $ | 17.00 |
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| Variable cost per cake |
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| Ingredients |
| 2.50 |
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| Direct labor |
| 1.40 |
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| Overhead (box, etc.) |
| 0.20 |
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| Fixed cost per month | $ | 3,850.00 |
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Required:
- Determine Corys break-even point in units and sales dollars.
- Determine the bakerys margin of safety if it currently sells 450 cakes per month.
- Determine the number of cakes that Cory must sell to generate $2,000 in profit.
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