Question

Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.01...

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. (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 360 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 $1,900 in profit. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.)

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