Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. Mssume that Love soid 400 cakes Iast monun. Laicuiate the company s degree or operaung leverage. 3. Using the degree of operating leverage, calculate

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
4. Mssume that Love soid 400 cakes Iast monun. Laicuiate the company s degree or operaung leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 11 percent increase in sales re Complete this question by entering your answers in the tabs below. 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 $1.10 per cake. b. Fixed costs increase by $550 per month. c. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.80 per cake. Cove's Cakes is a local bakery. Price and cost information follows: Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.10 per cake. b. Fixed costs increase by $550 per month. c. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.80 per cake. 2. Assume that Cove sold 455 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 11 percent increase in sales reve Complete this question by entering your answers in the tabs below. Calculate Cove's new break-even point under each of the following independent scenarios: Note: Round your answers to the nearest whole number. a. Sates price fincreases by $1.10 per cake. b. Fixed costs increase by $550 per month. c. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.80 per cake. Heather Hudson makes stuffed teddy bears. Recent information for her business follows: She sells 370 bears this month. Required: Suppose sales increase by 10 percent next month. Calculate the effect that increase will have on her profit: Note: Round your intermediate calculations to 2 decimal places. Round your final answer to 1 decimal place. (f.e. 0.123 should be entered as 12.3% ) Answer is complete but not entirely correct. Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.10 per cake. b. Fixed costs increase by $550 per month. c. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.80 per cake. 2. Assume that Cove sold 455 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 11 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Using the degree of operating leverage, calculate the change in profit caused by a 11 percent increase in sales revenue. Note: Round your final answer to 2 decimal places. (1.e, 0.1234 should be entered as 12.34% ) 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price inceases by $1.10 per cake. b. Fixed costs increase by $550 per month. c. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.80 per cake. 2. Assume that Cove sold 455 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 11 percent increase in sales rever Complete this question by entering your answers in the tabs below. Assume that Cove sald 455 cakes last month. Calculate the company's degree of operating leverage. Note: Do not round intermediate calculations. Round your answer to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions