Coves Cakes is a local bakery. Price and cost information follows:

Price per cake	$	14.91
Variable cost per cake
Ingredients		2.31
Direct labor		1.03
Overhead (box, etc.)		0.23
Fixed cost per month	$	3,742.20

Required:

1. Determine Coves break-even point in units and sales dollars. (Round your Break-Even Units answer to the nearest whole number. Round your other intermediate calculations and sales dollars answer to 2 decimal places.)

Break-Even Units		Cakes
Break-Even Sales Dollars

2. Determine the bakerys margin of safety if it currently sells 430 cakes per month. (Round your intermediate calculations to 2 decimals and use the break-even units calculated in Requirement 1.)

Determine the bakerys margin of safety if it currently sells 430 cakes per month. (Round your intermediate calculations to 2 decimals and use the break-even units calculated in Requirement 1.)

Margin of Safety

3. Determine the number of cakes that Cove must sell to generate $2,300 in profit. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.)

Target Sales Units

Cakes