
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Cove's Cakes is a local bakery. Price and cost information follows:
Price per cake
Variable cost per cake
$
13.51
Ingredients
Direct labor
2.27
1.17
Overhead (box, etc.)
Fixed cost per month
0.20
$3,553.20
Required:
1. Determine Cove's break-even point in units and sales dollars.
2. Determine the bakery's margin of safety if it currently sells 430 cakes per month.
3. Determine the number of cakes that Cove must sell to generate $2,600 in profit.

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