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.
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.
Chapter1: Financial Statements And Business Decisions
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