c. Variable costs decrease by $0.30 per cake. ven cakes d. Sales price decreases by $0.80 per cake. ven cakes 2. Assume that Cove sold 500 cakes last month. Calculate the company's degree of operating leverage. (Do not round intermediate calculations. Round your answer to 2 decimal places.) egree of Operating 3. Using the degree of operating leverage calculated in Requirement 2, calculate the change in profit caused by a 10 percent increase in sales revenue. (Round your final answer to 2 decimal places (i.e. .1234 should be entered as 12.34%.)) Effect on Profit Cove's Cakes is a local bakery. Price and cost information follows: $ 13.31 Price per cake Variable cost per cake Ingredients Direct labor 2.33 1.04 0.26 $4,549.60 Overhead (box, etc.) Fixed cost per month Required 1. Calculate Cove's new break-even point under each of the following independent scenarios: (Round your answer to the nearest whole number.) a. Sales price increases by $1.60 per cake Break-Even Point cakes b. Fixed costs increase by $500 per month. reak-Even Point cakes