Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.21 Variable cost per cake Ingredients 2.33 Direct labor 1.12 Overhead (box, etc.) 0.25 Fixed cost per month $ 3,153.00 How do i find the break even sales for this problem

Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.21 Variable cost per cake Ingredients 2.33 Direct labor 1.12 Overhead (box, etc.) 0.25 Fixed cost per month $ 3,153.00 How do i find the break even sales for this problem

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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Question

Cove’s Cakes is a local bakery. Price and cost information follows:


Price per cake	$	14.21
Variable cost per cake
Ingredients		2.33
Direct labor		1.12
Overhead (box, etc.)		0.25
Fixed cost per month	$	3,153.00

How do i find the break even sales for this problem

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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