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Coves Cakes is a local bakery. Price and cost information follows: $ 13.21 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box,
Coves Cakes is a local bakery. Price and cost information follows:
$ 13.21 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) 2.34 1.18 0.25 $4,531.20 Fixed cost per month Required: 1. Determine Cove's 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 bakery's margin of safety if it currently sells 530 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 $1,200 in profit. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.) Target Sales Units CakesStep by Step Solution
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