Cove's Cakes is a local bakery. Price and cost information follows: $ 14.11 2.23 1.13 0.21 3,689.00 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed costs per month Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety in sales dollars if it currently sells 450 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $1,700 in profit.
Cove's Cakes is a local bakery. Price and cost information follows: $ 14.11 2.23 1.13 0.21 3,689.00 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed costs per month Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety in sales dollars if it currently sells 450 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $1,700 in profit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cove's Cakes is a local bakery. Price and cost information follows:
Price per cake
Variable cost per cake
Ingredients
Direct labor
Overhead (box, etc.)
Fixed costs per month
Required:
1. Determine Cove's break-even point in units and sales dollars.
2. Determine the bakery's margin of safety in sales dollars if it currently sells 450 cakes per month.
3. Determine the number of cakes that Cove must sell to generate $1,700 in profit.
Required 1 Required 2
$ 14.11
Complete this question by entering your answers in the tabs below.
Break-Even Units
Break-Even Sales Dollars
2.23
1.13
0.21
3,689.00
Required 3
> Answer is complete but not entirely correct.
$
Determine Cove's break-even point in units and sales dollars.
Note: Round your Break-Even Units answer to the nearest whole number. Round your other intermediate calculations and
sales dollars answer to 2 decimal places.
353 x Cakes
4,981.00 x
Required 1
Required 2 >
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