Exam II e Acoma Co. Has ldentifie x × C | ezto.mheducation.com/hm.tpx Price per

Question

Exam II e Acoma Co. Has ldentifie x × C | ezto.mheducation.com/hm.tpx Price per cake Variable cost per cake $ 14.11 Ingredients Direct labor Overhead (box, etc. ) 2.28 1.13 022 $4,296.80 Fixed cost per month Required: 1. Determine Cove's break-even point in units and sales dollars. (Round your Break-Eve places.) Break-Even Units Cakes Break-Even Sales Dollars 2. Determine the bakery's margin of safety if it currently sells 460 cakes per month. (Roun argin of Safety 3. Determine the number of cakes that Cove must sell to generate $2,900 in profit. (Round Target Sales Units Cakes

Explanation / Answer

1 Break even units=4296.8/(14.11-2.28-1.13-0.22)= 410 Break even sales dollars=410*14.11= $5785.10 2 Margin of safety = 460-410 = 50 3 Target sales units=(4296.8+2900)/(14.11-2.28-1.13-0.22)= 687

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