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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07b5ee6a-4fc5-4a92-accf-59f93f0c2829%2F17166480-663d-454f-8436-ca2342ca20c8%2Fqq8i9na_processed.jpeg&w=3840&q=75)
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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