es Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
es Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients $ 13.41 2.18 Direct labor 1.06 Overhead (box, etc.) 0.13 Fixed costs per month 4,819.20 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.90 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.39 per cake. d. Sales price decreases by $0.70 per cake. 2. Assume that Cove sold 505 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 7 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate Cove's new break-even point under each of the following independent scenarios: Note: Round your answers to the nearest whole number. a. Sales price increases by $1.90 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.39 per cake. d. Sales price decreases by $0.70 per cake. Break-Even Point Show less es Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients $ 13.41 2.18 Direct labor 1.06 Overhead (box, etc.) 0.13 Fixed costs per month 4,819.20 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.90 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.39 per cake. d. Sales price decreases by $0.70 per cake. 2. Assume that Cove sold 505 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 7 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate Cove's new break-even point under each of the following independent scenarios: Note: Round your answers to the nearest whole number. a. Sales price increases by $1.90 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.39 per cake. d. Sales price decreases by $0.70 per cake. Break-Even Point Show less
Expert Answer:
Answer rating: 100% (QA)
Answer Coves Cakes BreakEven Point Calculations We can calculate the b... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
Students also viewed these accounting questions
-
ASSIGNMENT DEFINING STAGE Select a Project that you would like to complete. The project can be personal or professional. It can be something tangible like building a deck, drone, etc., or intangible...
-
Word Problem 13-14 (Algo) [LU 13-1 (2)] After paying off a car loan or credit card, don't remove this amount from your budget. Instead, invest in your future by applying some of it to your retirement...
-
Only the last question, others I got answer. 1.Consider the following two stocks. Probabilities (pi) Stock "a" Stock "b" Recession p1=29% -8% 6% Normal p2=20% 10% -13% Boom p3=51% 14% 21% The...
-
For the couple-stress theory, show that the two stress functions satisfy: = 0= +-zd'0=+
-
The shape of the centroid line of the Gateway Arch in St. Louis can be modeled approximately with the equation: f(x) = 693.9 - 68.8cosh(x/99.7) for -299.25 By using the equation: determine the length...
-
Refer to the asphalt data in Example 1.12. a. Construct a box plot for the asphalt data. b. Which values, if any, are outliers? c. Construct a dot plot for the asphalt data. d. For purposes of...
-
Dwight Corporation has the following groups of individually insignificant leases at 12/31/15. Prepare journal entries to record impairment for each of the groups at 12/31/15. Total costs Total...
-
Since LSUS corporation is producing at full capacity, Amanda has decided to have Han examine the feasibility of a new manufacturing plant. This expansion would represent a major capital outlay for...
-
Question 45 Points Find the corresponding angles in A ABC and A CDE. A B D C E O ZACB and ZCDE, ZCBA and ZECD, ZBAC and ZCED ZACB and ZCED, ZBCA and ZECD, ZBAC and ZCDE O ZABC and ZCDE, ZBCA and...
-
Through an Internet search, identify several factors that may influence pricing in any industry. Then compare them to factors in the healthcare industry. Are they similar or different?
-
number of dolls of this type that were sold (in thousands ) during a given year from 1993 to 2003 . Estimate how many dolls were sold in 2002.
-
XYZ Bakery commenced its operations on January 1, 2024. The following transactions occurred during the month of January: 1. January 1: The owner invested $10,000 cash in the business. 2. January 5:...
-
Woodvine Day Camp is a cooperative camp, formed over forty years ago to serve children in the Laurentian community of Lanthier. In recent years enrollment has been decreasing, largely due to parent...
-
What would be the Euclidean distance between 2 data points X(1,3) and Y(2,3)?
-
During 2021, GH Company became involved in a tax dispute with the BIR. On December 31, 2021, the entity's tax advisor believed that an unfavorable outcome was probable, and the best estimate of...
-
What does an actual Safety Management System annual review look like?
-
Consider a game of poker being played with a standard 52-card deck (four suits, each of which has 13 different denominations of cards). At a certain point in the game, six cards have been exposed. Of...
-
What role does MIS play? Do they have a chief information officer? Do they have a Web site? How in-depth do you consider it to be? You may wish to compare it with other sites.
-
The Barings desk on the trading floor is abandoned. The computer screens are dead. The little Union Jack that was sitting on one of the terminals a few days ago has mysteriously vanished. This little...
-
Look at the annual report of an MNE. As you read about the product lines and geographical operations, what kind of organizational structure would you guess the company has?
Study smarter with the SolutionInn App