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:

Price per cake	$	14.51
Variable cost per cake
Ingredients		2.16
Direct labor		1.07
Overhead (box, etc.)		0.12
Fixed cost per month	$	4,240.80

Required: 1. Determine Coves 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.) 2. Determine the bakerys margin of safety if it currently sells 440 cakes per month. (Round your intermediate calculations to 2 decimals. Round the break-even units and final answer to nearest whole dollar.) 3. Determine the number of cakes that Cove must sell to generate $2,500 in profit. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.)