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BREAK EVEN POINT Please find the Break-Even Point based on the following information: Cove's Cakes is a local baker: Price per cake $14.91 Variable Cost Per Cake Ingredients $2.32 Direct Labor $1.19 Overhead $.16 Fixed Cost Per Month $4046.40 1) What would be the new break even point if the sales price increases by $1.08 per cake? 2) What if the Fixed Costs increase by $450 per month 3) What if Variable Costs decrease by $.41 per cake

BREAK EVEN POINT Please find the Break-Even Point based on the following information: Cove's Cakes is a local baker: Price per cake $14.91 Variable Cost Per Cake Ingredients $2.32 Direct Labor $1.19 Overhead $.16 Fixed Cost Per Month $4046.40 1) What would be the new break even point if the sales price increases by $1.08 per cake? 2) What if the Fixed Costs increase by $450 per month 3) What if Variable Costs decrease by $.41 per cake

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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BREAK EVEN POINT

Please find the Break-Even Point based on the following information:

Cove's Cakes is a local baker:

Price per cake $14.91

Variable Cost Per Cake

Ingredients $2.32

Direct Labor $1.19

Overhead $.16

Fixed Cost Per Month $4046.40

1) What would be the new break even point if the sales price increases by $1.08 per cake?

2) What if the Fixed Costs increase by $450 per month

3) What if Variable Costs decrease by $.41 per cake

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