Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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