This is my Question:Breakeven Analysis/Target Sales (to be completed in Excel)

Although business was off to a great start in January, Rich realized that he would need to be profitable in order to continue as a viable business. He discussed the subject of profitability with Adrian who suggested that he needs o determine his breakeven point in both sales and dollars. He explained that break even is the point where all costs are covered by sales and so, profit is equal to zero. He also suggested that the company should establish monthly target profitability in order to determine the amount of cakes it would need to sell to achieve this level.Since Rich didnt know how to perform this calculation and in order to save money, he asked you to calculate the companys breakeven point and the target sales needed to achieve a monthly profit of $500.Required: Calculate S & S Bakerys breakeven point in both units and sales dollars. Also, calculate the sales needed in order to achieve a monthly profit of $500. (Note: Use four decimal places in converting from total to per unit cost).

TABLE #1: COST INFORMATION

ITEM AND INGREDIENTS	COST	STANDARD PER CAKE
Conventional Oven	$6,000 (depreciated over 5 years on a SL basis No salvage)	n/a
Refrigerator	$0 (provided by landlord)
Baking pans, licenses	$0 (paid by dad)
Baking flour	$24 per 8 lb. bag	1 pound
Eggs	$2 dozen	4 eggs
Sugar	$15 per 25 lb. bag	1 lb.
Baking soda	$6 per 14 lb. box
Butter	$6.50 per 4 lb.	1 lb.
Raisins	$8 per 2 lbs.	lb.
Others (cinnamon, yeast, walnuts)	$30 for all 3 boxes per month
Cash register	$12 per month (rental for 2 years)
Utilities (includes gas, electric, and water)	$50 month
Mobile phone (business)	$50 month
Salary Rich	$500 month
Wages Michelle/Jen	$8 hr.	1 person 1.5 hours
Salary Fern	$100 month
Accountant	$100 month
Estimated MOH	$4 per cake

Break Even Analysis/Target Sales

January 2017 1 unit

Sales

Variable Expenses

Contribution Margin

Fixed Expenses

Net Operating Income

Contribution Margin/Sales Ratio:

Break Even in Unit Sales:

Fixed expenses/CM unit Actual:

Cakes:

Break even in dollars:

Fixed expenses/CM ratio Actual:

Sales Price x Break Even per unit Per Cake:

Target Sales in Units:

Fixed expenses + profit/CM per unit

Target Sales in Dollars:

Fixed expenses + Profit/CM ratio Actual

Sales price x Target sales per unit Per cake