Cove$$s Cakes is a local bakery. Price and cost information follows:

Price per cake $ $14\mathrm{.}81$

Variable cost per cake

Ingredients $2\mathrm{.}31$

Direct labor $1\mathrm{.}18$

Overhead $($box$,$ etc.$)0\mathrm{.}25$

Fixed costs per month $4,317\mathrm{.}30$

Required:

Calculate Cove$$s new break$-$even point under each of the following independent scenarios:

Sales price increases by $$1\mathrm{.}90$ per cake.

Fixed costs increase by $$470$ per month.

Variable costs decrease by $$0\mathrm{.}40$ per cake.

Sales price decreases by $$0\mathrm{.}40$ per cake.

Assume that Cove sold $410$ 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 $14$ percent increase in sales revenue.