Question
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.)
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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.)
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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.
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