Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients $ 13.41 2.34 1.04 Overhead (box, etc.) 0.18 3,447.50 Direct labor 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 $2.00 per cake. b. Fixed costs increase by $525 per month. c. Variable costs decrease by $0.40 per cake. d. Sales price decreases by $0.40 per cake. 2. Assume that Cove sold 380 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. Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.59 per mile driven. Joyce has determined that if she drives 2,800 miles in a month, her total operating cost is $791. If she drives 4,900 miles in a month, her total operating cost is $1,043. Joyce has used the high-low method to determine that her monthly cost equation is total monthly cost $455+ $0.12 per mile driven. Required: 1. Determine how many miles Joyce needs to drive to break even. 2. Calculate Joyce's degree of operating leverage if she drives 5,100 miles. 3. Suppose Joyce took a week off and her sales for the month decreased by 29 percent. Using the degree of operating leverage, calculate the effect this will have on her profit for that month. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine how many miles Joyce needs to drive to break even. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number. Break-Even Units 679 Miles Required 1 Required 2 >