Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients $ 14.21 2.19 Direct labor

image text in transcribedimage text in transcribedimage text in transcribed

Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients $ 14.21 2.19 Direct labor 1.11 Overhead (box, etc.) 0.24 Fixed costs per month 4,161.30 Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety in sales dollars if it currently sells 450 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $1,100 in profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 calculations and sales dollars answer to 2 decimal places. Break-Even Units Break-Even Sales Dollars Cakes Required Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Requires 2 Required 3 Determine the bakery's margin of safety in sales dollars if it currently sells 450 cakes per month. Note: Round your intermediate calculations to 2 decimals. Round the final answer to nearest whole dollar. Margin of Safety < Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the number of cakes that Cove must sell to generate $1,100 in profit. Note: Round your intermediate calculations to 2 decimal places and final answer to nearest whole number. Target Sales Cakes < Required 2 Required

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips

1st Edition

0078110777, 9780078110771

More Books

Students also viewed these Accounting questions