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

Price per cake	$	13.61
Variable cost per cake
Ingredients		2.21
Direct labor		1.18
Overhead (box, etc.)		0.28
Fixed cost per month	$	4,771.20

Required:

1. Determine Coves break-even point in units and sales dollars.

2. Determine the bakerys margin of safety if it currently sells 520 cakes per month.

3. Determine the number of cakes that Cove must sell to generate $2,200 in profit.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3

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

• Required 2
• Required 3

Determine the bakerys margin of safety if it currently sells 520 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 ($)

• Required 3

Determine the number of cakes that Cove must sell to generate $2,200 in profit. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.)

Target Sales Units

Cakes