Chapter ) 1 Cove's Cakes is a local bakery. Price and cost information follows: 14.61 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.17 1.06 0.26 $3,669.6e Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios a. Sales price increases by $110 per cake b. Fixed costs increase by $520 per month c. Variable costs decrease by $0 45 per cake d. Sales price decreases by $0.20 per cake. 2. Assume that Cove sold 340 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: (Round your answers to nearest whole number.) a. Sales price increases by $1.10 per cake. b. Fixed costs increase by $520 per month. c. Variable costs decrease by $0.45 per cake. d. Sales price decreases by $0.20 per cake. Break-Even Point 1a. Sales price increases by $1.10 per cake 1b. Fixed costs increase by $520 per month 1c. Variable costs decrease by $0.45 per cake 1d. Sales price decreases by $0.20 per cake Required 2 > 5 (Chapter 6) 0 Cove's Cakes is a local bakery. Price and cost information follows: - 5 14.61 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 1.06 e. 26 $3,669.6e 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 $520 per month. c. Variable costs decrease by $0.45 per cake. d. Sales price decreases by $0.20 per cake. 2. Assume that Cove sold 340 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 Assume that Cove sold 340 cakes last month. Calculate the company's degree of operating leverage. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Degree of Operating Leverage Chapter 1 Cove's Cakes is a local bakery. Price and cost information follows: $ 14.61 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month $3,669.6e 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 $520 per month. c. Variable costs decrease by $0.45 per cake. d. Sales price decreases by $0.20 per cake. 2. Assume that Cove sold 340 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 Redured 3 Using the degree of operating leverage, calculate the change in profit caused by a 7 percent increase in sales revenue. (Round your intermediate values to 2 decimal places. (l.e. 0.1234 should be entered as 12.34%.)) Effect on Profit
