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Cove's Cakes is a local bakery. Price and cost information follows: $ 13.51 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box,
Cove's Cakes is a local bakery. Price and cost information follows: $ 13.51 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.15 1.05 0.17 $3,143.40 Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety if it currently sells 380 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $2,200 in profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine Cove's break-even point in units and sales dollars. (Round your Break-Even Units answer to the nearest whole number. Round your other intermediate calculations and sales dollars answer to 2 decimal places.) Break-Even Units Break-Even Sales Dollars 310 Cakes 4,188.10 $ Required 1 Required 2 > Cove's Cakes is a local bakery. Price and cost information follows: $ 13.91 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.18 1.11 0.28 $4,549.60 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $2.00 per cake. b. Fixed costs increase by $495 per month. c. Variable costs decrease by $0.25 per cake. d. Sales price decreases by $0.60 per cake. 2. Assume that Cove sold 455 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 12 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 the nearest whole number.) a. Sales price increases by $2.00 per cake. b. Fixed costs increase by $495 per month. c. Variable costs decrease by $0.25 per cake. d Sales price decreases by $0.60 per cake
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