Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Coves Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.11 Variable cost per cake Ingredients 2.33 Direct labor 1.19

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

Price per cake $ 13.11
Variable cost per cake
Ingredients 2.33
Direct labor 1.19
Overhead (box, etc.) 0.12
Fixed cost per month $ 3,882.70

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 490 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 $1,700 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 to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

Technical Analysis Of Stock Trends

Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti

9th Edition

0814408648, 978-0814408643

More Books

Students also viewed these Finance questions

Question

What do you need to know about motivation to solve these problems?

Answered: 1 week ago