Cove's Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.11...
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Cove's Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.11 Variable cost per cake Ingredients Direct labor 2.29 1.02 overhead (box, etc.) 0.20 Fixed costs per month. 3,072.00 Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety in sales dollars if it currently sells 390 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $2,100 in profit. Cove's Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.11 Variable cost per cake Ingredients Direct labor 2.29 1.02 overhead (box, etc.) 0.20 Fixed costs per month. 3,072.00 Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety in sales dollars if it currently sells 390 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $2,100 in profit.
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Breakeven point in units and sales dollars To calculate the breakeven point in units divide the tota... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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