Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

E6-3 Determining Break-Even Point, Target Profit, Margin of Safety [LO 6-1, 6-2, 6-3] Coves Cakes is a local bakery Price and cost information follows $1461

image text in transcribed

E6-3 Determining Break-Even Point, Target Profit, Margin of Safety [LO 6-1, 6-2, 6-3] Coves Cakes is a local bakery Price and cost information follows $1461 Price per cake Variable cost per cake 2.23 1.13 Direct labor Overhead (box, etc) Fixed cost per month $3 312 00 Required: 1. Delerine Cove's break even point in unils 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 satety if it currently sells 350 cakes per month. (Round your intermediate calculations to 2 decimals. Round the break-even units and final answer to nearest whole dollar.] n of S 3. Determine the number of cakes that Cove must sell to generate S2,800 in profit. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.) 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

The Employers Guide To Surviving Payroll And Human Resources Audits 2019

Authors: Paul E Love

1st Edition

1073422771, 978-1073422777

More Books

Students also viewed these Accounting questions

Question

3. Define the attributions we use to explain behavior

Answered: 1 week ago