Dove's Cakes is a local bakery. Price and cost information follows: Price per cake $ 15.01 Variable cost per cake Ingredients 2.22 Direct labor 1.15 Overhead (box, etc.) 0.15 Fixed cost per month $ 5,285.40
Required:
1. Determine Dove's break-even point in units and sales dollars.
2. Determine the bakery’s margin of safety if it currently sells 540 cakes per month.
3. Determine the number of cakes that Dove must sell to generate $1,100 in profit.
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