Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Coves Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.91 Variable cost per cake Ingredients 2.31 Direct labor 1.02
Coves Cakes is a local bakery. Price and cost information follows:
Price per cake | $ 13.91 |
---|---|
Variable cost per cake | |
Ingredients | 2.31 |
Direct labor | 1.02 |
Overhead (box, etc.) | 0.20 |
Fixed costs per month | 4,152.00 |
Required:
- Determine Coves break-even point in units and sales dollars.
- Determine the bakerys margin of safety in sales dollars if it currently sells 500 cakes per month.
- Determine the number of cakes that Cove must sell to generate $2,600 in profit.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started