Question: Cove s Cakes is a local bakery. Price and cost information follows: Price per cake $ 1 3 . 2 1 Variable cost per cake

Coves Cakes is a local bakery. Price and cost information follows:
Price per cake $ 13.21
Variable cost per cake
Ingredients 2.22
Direct labor 1.09
Overhead (box, etc.)0.26
Fixed costs per month 3,470.40
Required:
Determine Coves break-even point in units and sales dollars.
Determine the bakerys margin of safety in sales dollars if it currently sells 420 cakes per month.
Determine the number of cakes that Cove must sell to generate $1,200 in profit.

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