Question
Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients $ 13.11 2.17 Direct labor
Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients $ 13.11 2.17 Direct labor 1.12 Overhead (box, etc.) 0.23 Fixed cost per month $3,548.30 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 $2,600 in profit.
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