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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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Question

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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
$
14.41
2.24
1.16
0.25
$4,842.00
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 540 cakes per month.
3. Determine the number of cakes that Cove must sell to
generate $2,100 in profit.
tA

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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
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