Question
Coves Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.81 Variable cost per cake Ingredients 2.16 Direct labor 1.18
Coves Cakes is a local bakery. Price and cost information follows:
Price per cake | $ | 13.81 | |
Variable cost per cake | |||
Ingredients | 2.16 | ||
Direct labor | 1.18 | ||
Overhead (box, etc.) | 0.18 | ||
Fixed cost per month | $ | 3,189.90 | |
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 380 cakes per month. (Round your intermediate calculations to 2 decimals. Round the break-even units and final answer to nearest whole dollar.)
Margin of Safety: 3. Determine the number of cakes that Cove must sell to generate $2,900 in profit. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.)
Target Sales Units:
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