Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed costs per month Required: $14.41 2.18 1.17 0.16 3,488.00 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 380 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $2,500 in profit.

Cove's Cakes is a local bakery. Price and cost information follows: 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 380 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $2,500 in profit