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E6-3 Determining Break-Even Point, Target Profit, Margin of Safety [LO 6-1, 6-2, 6-3] 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 $ 14.51 2.16 1.07 0.12 $ 4,240.80 Required: 1. 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.) 2. Determine the bakery's margin of safety if it currently sells 440 cakes per month. (Round your intermediate calculations to 2 decimals. Round the break-even units and final answer to nearest whole dollar.) 3. Determine the number of cakes that Cove must sell to generate $2,500 in profit. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.)

E6-3 Determining Break-Even Point, Target Profit, Margin of Safety [LO 6-1, 6-2, 6-3] 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 $ 14.51 2.16 1.07 0.12 $ 4,240.80 Required: 1. 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.) 2. Determine the bakery's margin of safety if it currently sells 440 cakes per month. (Round your intermediate calculations to 2 decimals. Round the break-even units and final answer to nearest whole dollar.) 3. Determine the number of cakes that Cove must sell to generate $2,500 in profit. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.)

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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E6-3 Determining Break-Even Point, Target Profit, Margin Safety [LO 6-1, 6-2, 6-3] 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 $ 14.51 2.16 1.07 0.12 $ 4,240.80 Required: 1. 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.) 2. Determine the bakery's margin of safety if it currently sells 440 cakes per month. (Round your intermediate calculations to 2 decimals. Round the break-even units and final answer to nearest whole dollar.) 3. Determine the number of cakes that Cove must sell to generate $2,500 in profit. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.)
Transcribed Image Text:E6-3 Determining Break-Even Point, Target Profit, Margin Safety [LO 6-1, 6-2, 6-3] 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 $ 14.51 2.16 1.07 0.12 $ 4,240.80 Required: 1. 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.) 2. Determine the bakery's margin of safety if it currently sells 440 cakes per month. (Round your intermediate calculations to 2 decimals. Round the break-even units and final answer to nearest whole dollar.) 3. Determine the number of cakes that Cove must sell to generate $2,500 in profit. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.)
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