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Calculate Cove's new break - even point under each of the following independent scenarios: a . Sales price increases by $ 1 . 2 0
Calculate Cove's new breakeven point under each of the following independent
scenarios:
a Sales price increases by $ per cake.
b Fixed costs increase by $ per month.
c Variable costs decrease by $ per cake.
d Sales price decreases by $ per cake.
Assume that Cove sold cakes last month. Calculate the company's degree of
operating leverage.
Using the degree of operating leverage, calculate the change in profit caused by a
percent increase in sales revenue.
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