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Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake $ 13.61 2.18 1.15 0.27 $3,803.80 Direct
Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake $ 13.61 2.18 1.15 0.27 $3,803.80 Direct labor 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 $1.20 per cake. Answer is complete and Break- 3cakes b. Fixed costs increase by $510 per month. Answer is complete and Break- 430cakes c. Variable costs decrease by $0.27 per cake. Answer is complete and Break- 3cakes d. Sales price decreases by SO.70 per cake. Answer is complete and Break- 408 cakes 2. Assume that Cove sold 405 cakes last month. Calculate the company's degree of operating leverage. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is not complete. Degree 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
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