Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Cove's Cakes is a local bakery. Price and cost information follows: $ 13.81 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box,

image text in transcribed

Cove's Cakes is a local bakery. Price and cost information follows: $ 13.81 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.24 1.04 0.12 $4,372.20 Required: 1. Determine Cove's 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.) Cakes Break-Even Units Break-Even Sales Dollars 2. Determine the bakery's margin of safety if it currently sells 480 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 $1,400 in profit. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.) Target Sales Units Cakes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

9th Edition

9780073530703

Students also viewed these Accounting questions