Cove\'s Cakes is a local bakery. Price and cost information follows: Price per c
ID: 2537780 • Letter: C
Question
Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake S 15.01 Ingredients Direct labor Overhead (box, etc.) 2.18 1.12 0.29 $3,768.60 Fixed cost per month 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 of safety if it currently sells 420 cakes per month. (Round your intermediate calculations to 2 decimals. Round the break-even units and final answer to nearest whole dollar.) n of Safety 3, Determine the number of cakes that Cove must sell to generate $1,400 in profit. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.) Target Sales UnitsExplanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Sales 15.01 Less Variable Expenses per cake Ingredients 2.18 Direct Labour 1.12 Overhead 0.29 Variable cost per unit 3.59 Contribution Margin = 15.01 - 3.59 11.42 Fixed cost 3,768.60 Break even units = 3768.60/11.42 330.00 Break even in $ = 330 * 15.01 4,953.30 2) Margin of safety = 420*15.01 - 4953.30 1,350.90 3) Profit desired 1,400.00 Fixed cost 3,768.60 Contribution desired 5,168.60 Contribution per unit 11.42 Target sales units = 5168.60/11.42 452.59