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 cost per month 13.41 2.15 1.12 0.23 $4,756.80 Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety if it currently sells 550 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $1,200 in profit.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 cost per month
2$
13.41
2.15
1.12
0.23
$4,756.80
Required:
1. Determine Cove's break-even point in units and sales dollars.
2. Determine the bakery's margin of safety if it currently sells 550 cakes per month.
3. Determine the number of cakes that Cove must sell to generate $1,200 in profit.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Determine Cove's break-even point in units and sales dollars. (Round your Break-Even Units answer to the nearest whole
number. Round your other intermediate calculations and sales dollars answer to 2 decimal places.)
Break-Even Units
Cakes
Break-Even Sales Dollars
Required 2 >
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Transcribed Image Text:lomework i Saved Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2$ 13.41 2.15 1.12 0.23 $4,756.80 Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety if it currently sells 550 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $1,200 in profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 Required 2 > Prev 1 of 10 Next > re to search 1O
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