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Cove's Cakes is a local bakery. Price and cost information follows: $ 17.00 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box,
Cove's Cakes is a local bakery. Price and cost information follows: $ 17.00 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.50 1.40 0.20 $3,850.00 Required: 1. Determine Cove's break-even point in units and sales dollars. (Round your Break-Even Units answer to the nearest whole number and sales dollars answer to 2 decimal places.) Cakes Break-Even Units Break-Even Sales Dollars 2. Determine the bakery's margin of safety if it currently sells 450 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 $2,000 in profit. (Round your answer to the nearest whole number.) Target Sales Cakes
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