Cove's Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.81 Variable cost per cake Ingred

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Cove S Cakes Is A Local Bakery Price And Cost Information Follows Price Per Cake 13 81 Variable Cost Per Cake Ingred 1 (101.92 KiB) Viewed 32 times

Cove's Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.81 Variable cost per cake Ingredients 2.23 Direct labor 1.16 Overhead (box, etc.) 0.22 Fixed cost per month $3,774.00 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.60 per cake. b. Fixed costs increase by $525 per month. c. Variable costs decrease by $0.43 per cake. d. Sales price decreases by $0.80 per cake. 2. Assume that Cove sold 380 cakes last month. Calculate the company's degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 13 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, calculate the change in profit caused by a 13 percent increase in sales revenue. (Round your intermediate values to 2 decimal places. (i.e. 0.1234 should be entered as 12.34%.)) Effect on Profit %