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Coves Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.41 Variable cost per cake Ingredients 2.34 Direct labor 1.20

Coves Cakes is a local bakery. Price and cost information follows:

Price per cake $ 14.41
Variable cost per cake
Ingredients 2.34
Direct labor 1.20
Overhead (box, etc.) 0.18
Fixed cost per month $ 4,276.00

Required:

1. Determine Coves break-even point in units and sales dollars.

Breakeven = ? Sales dollars = ?

2. Determine the bakerys margin of safety if it currently sells 480 cakes per month.

3. Determine the number of cakes that Cove must sell to generate $2,500 in profit.

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