Coves Cakes is a local bakery. Price and cost information follows:

Price per cake	$ 14.81
Variable cost per cake
Ingredients	2.21
Direct labor	1.15
Overhead (box, etc.)	0.21
Fixed costs per month	4,833.20

Required:

1. Calculate Coves new break-even point under each of the following independent scenarios: Note: Round your answers to the nearest whole number.

Sales price increases by $1.30 per cake.

Fixed costs increase by $550 per month.

Variable costs decrease by $0.37 per cake.

Sales price decreases by $0.60 per cake.

2. Assume that Cove sold 455 cakes last month. Calculate the companys degree of operating leverage. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

3. Using the degree of operating leverage, calculate the change in profit caused by a 13 percent increase in sales revenue. Note: Round your final answer to 2 decimal places. (i.e. 0.1234 should be entered as 12.34%.)