Question

Cove’s Cakes is a local bakery. Price and cost information
follows:

Price per cake | $ | 13.01 | |

Variable cost per cake | |||

Ingredients | 2.22 | ||

Direct labor | 1.09 | ||

Overhead (box, etc.) | 0.20 | ||

Fixed cost per month | $ | 2,945.00 | |

**Required:
1.** Determine Cove’s break-even point in units and sales
dollars.

Answer #1

Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per
cake
$
14.91
Variable cost
per cake
Ingredients
2.33
Direct
labor
1.18
Overhead (box,
etc.)
0.25
Fixed cost per
month
$
3,233.50
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...

Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
13.81
Variable cost per cake
Ingredients
2.33
Direct labor
1.19
Overhead (box, etc.)
0.17
Fixed cost per month
$
3,137.20
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...

Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
14.41
Variable cost per cake
Ingredients
2.28
Direct labor
1.07
Overhead (box, etc.)
0.20
Fixed cost per month
$
4,887.00
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 510 cakes per month.
3. Determine the number of cakes that Cove must
sell to generate $1,500 in profit.
Complete this question
by...

Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
14.11
Variable cost per
cake
Ingredients
2.29
Direct labor
1.06
Overhead (box,
etc.)
0.12
Fixed cost per
month
$
4,894.40
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.)
Break-Even Units
Cakes
Break-Even Sales Dollars
2. Determine the bakery’s margin...

Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
13.81
Variable cost per
cake
Ingredients
2.16
Direct labor
1.18
Overhead (box,
etc.)
0.18
Fixed cost per
month
$
3,189.90
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.)
Break Even Units: _____ Cakes
Break Even Sales Dollars:
2....

Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
14.31
Variable cost per cake
Ingredients
2.32
Direct labor
1.12
Overhead (box, etc.)
0.12
Fixed cost per month
$
3,547.50
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 400 cakes per month.
3. Determine the number of cakes that Cove must
sell to generate $1,500 in profit.

Cove’s Cakes is a local bakery. Price and cost information
follows: Price per cake $ 14.31 Variable cost per cake Ingredients
2.18 Direct labor 1.03 Overhead (box, etc.) 0.27 Fixed cost per
month $ 3,790.50
Required: 1. Calculate Cove’s new break-even point under each of
the following independent scenarios: (Round your answer to the
nearest whole number.)
a. Sales price increases by $1.80 per cake.
b. Fixed costs increase by $495 per month.
c. Variable costs decrease by $0.44 per...

E6-4 Analyzing Changes in Price, Cost Structure, Degree of
Operating Leverage [LO 6-4, 6-5]
Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
14.91
Variable cost per cake
Ingredients
2.18
Direct labor
1.08
Overhead (box, etc.)
0.29
Fixed cost per month
$
3,748.80
Required:
1. Calculate Cove’s new break-even point under each of the
following independent scenarios: (Round your answer to the
nearest whole number.)
a. Sales price increases by $1.40 per cake.
b....

The manufacturer of a product that has a variable cost of $2.80
per unit and total fixed cost of $133,000 wants to determine the
level of output necessary to avoid losses.
What level of sales is necessary to break-even if the product
is sold for $4.85? Round your answer to the nearest whole number.
units
What will be the manufacturer’s profit or loss on the sales of
99,000 units? Round your answer to the nearest dollar.
$
If fixed costs...

Sandy Bank, Inc., makes one model of wooden canoe. and, the
information for it follows:
Number of canoes produced and sold
500
700
850
Total costs
Variable costs
$
90,000
$
126,000
$
153,000
Fixed costs
$
119,000
$
119,000
$
119,000
Total costs
$
209,000
$
245,000
$
272,000
Cost per unit
Variable cost per unit
$
180.00
$
180.00
$
180.00
Fixed cost per unit
238.00
170.00
140.00
Total cost per unit
$
418.00
$
350.00
$
320.00...

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