Cove's Cakes is a local bakery. Price and cost information follows: 1.40 Price per cake $ 17.00 Variable cost per cake Ingredients 2.50 Direct labor Overhead (box, etc.) 0.20 Fixed cost per month $3,850.00 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.00 per cake. b. Foxed costs increase by $500 per month c. Variable costs decrease by $0.35 per cake. d. Sales price decreases by $0.50 per cake. 2. Assume that Cove sold 400 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 10 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 $1.00 per cake. Show more Break-Even Point 1a. Sales price increases by $1.00 per cake 1b. Foxed costs increase by $500 per month 10. Variable costs decrease by $0.35 per cake 1d. Sales price decreases by 50.50 per cake Required 2 > Cove's Cakes is a local bakery. Price and cost information follows: Price per cake $ 17.00 Variable cost per cake Ingredients 2.50 Direct labor 1.40 Overhead (box, etc.) 0.20 Fixed cost per month $3,850.00 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.00 per cake. b. Fixed costs increase by $500 per month c. Variable costs decrease by $0.35 per cake. d. Sales price decreases by $0.50 per cake. 2. Assume that Cove sold 400 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 10 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that Cove sold 400 cakes last month. Calculate the company's degree of operating leverage. (Round your answer to 4 decimal places.) Degree of Operating Leverage ( Required 1 Required 3 > Hezlo.meducation.com Careers Link to Connect - ACC203: MANAGERIAL ACCOUNTING Connect-6 Cove's Cakes is a local bakery. Price and cost information follows: 2.50 Price per cake $ 17.00 Variable cost per cake Ingredients Direct labor 1.40 Overhead (box, etc.) 0.20 Fixed cost per month $3,850.00 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.00 per cake. b. Fixed costs increase by $500 per month c. Variable costs decrease by $0.35 per cake. d. Sales price decreases by $0.50 per cake. 2. Assume that Cove sold 400 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 10 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, calculate the change in profit caused by a 10 percent increase in sales revenue (Do not round your intermediate calculations, Round your final answer to 2 decimal places. (l.e. 1234 should be entered as 12.34%.)) Effect on Profil
