Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

image text in transcribed

$ 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 Cakes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Society Research On Audit Practice And Regulations

Authors: Wally Smieliauskas, Minlei Ye, Ping Zhang

1st Edition

1138314129, 978-1138314122

More Books

Students also viewed these Accounting questions