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Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed
Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed costs per month Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.70 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.40 per cake. 2. Assume that Cove sold 440 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 8 percent increase in Required 1 Required 2 $ 14.81 Complete this question by entering your answers in the tabs below. Required 3 2.19 1.12 0.27 4,828.90 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 $1.70 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.40 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 $1.70 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.40 per cake. 2. Assume that Cove sold 440 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 8 percent increase 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 $1.70 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.40 per cake
Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed costs per month Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.70 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.40 per cake. 2. Assume that Cove sold 440 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 8 percent increase in Required 1 Required 2 $ 14.81 Complete this question by entering your answers in the tabs below. Required 3 2.19 1.12 0.27 4,828.90 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 $1.70 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.40 per cake.
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Principles of Accounting
Authors: Needles, Powers, crosson
11th Edition
1439037744, 978-1133626985, 978-1439037744
