Cove’s Cakes is a local bakery. Price and cost information follows:     Price per cake$14.21 Variable cost per cake   Ingredients 2.33 Direct labor 1.12 Overhead (box, etc.) 0.25 Fixed cost per month$3,153.00       How do i find the break even sales for this problem

Asked Oct 8, 2019

Cove’s Cakes is a local bakery. Price and cost information follows:

Price per cake $ 14.21  
Variable cost per cake      
Ingredients   2.33  
Direct labor   1.12  
Overhead (box, etc.)   0.25  
Fixed cost per month $ 3,153.00  


How do i find the break even sales for this problem


Expert Answer

Step 1

Breakeven point is that level of sales when the the contribution is just able to cover the fixed costs. The contribution per unit is computed by subtracting t...

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