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Question in image Cove's Cakes is a local bakery. Price and cost information follows: $ 14.71 Price per cake Variable cost per cake Ingredients Direct
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Cove's Cakes is a local bakery. Price and cost information follows: $ 14.71 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.23 1.10 8.25 $5,808.50 Required: 1. Determine Cove's 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.) Break-Even Units Cakes Break-Even Sales Dollars 2. Determine the bakery's margin of safety if it currently sells 500 cakes per month. (Round your Intermediate calculations to 2 decimals. Round the break-even units and final answer to nearest whole dollar.) Margin of Safety 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.) Target Sales Units CakesStep by Step Solution
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