Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cove's Cakes is a local bakery. Price and cost information follows: $ 13.21 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box,
Cove's 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.) Fixed cost per month 2.21 1.18 0.14 $3,194.40 Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety if it currently sells 420 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $2,800 in profit. 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.) Cakes Break-Even Units Break-Even Sales Dollars Required 1 Required 2 Required 3 Determine the bakery's margin of safety if it currently sells 420 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 (5) Required 1 Required 2 Required 3 Determine the number of cakes that Cove must sell to generate $2,800 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
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