Cove's Cakes is a local bakery. Price and cost information follows:

Price per cake

Variable cost per cake

Ingredients

Direct labor

Overhead $($box$,$ etc.$)$

Fixed costs per month

$$13\mathrm{.}91$

$2\mathrm{.}30$

$1\mathrm{.}08$

$0\mathrm{.}28$

$3,587\mathrm{.}50$

Required:

Calculate Cove's new break$-$even point under each of the following independent scenarios:

a$.$ Sales price increases by $$1\mathrm{.}30$ per cake.

b$.$ Fixed costs increase by $$510$ per month.

c$.$ Variable costs decrease by $$0\mathrm{.}26$ per cake.

d$.$ Sales price decreases by $$0\mathrm{.}40$ per cake.

Assume that Cove sold $370$ cakes last month. Calculate the company's degree of operating leverage.

Using the degree of operating leverage, calculate the change in profit caused by a $7$ percent increase in sales revenue.

Complete this question by entering your answers in the tabs below.

Required $2$

Calculate Cove's new break$-$even point under each of the following independent scenarios:

Note: Round your answers to the nearest whole number.

a$.$ Sales price increases by $$1\mathrm{.}30$ per cake.

b$.$ Fixed costs increase by $$510$ per month.

c$.$ Variable costs decrease by $$0\mathrm{.}26$ per cake.

d$.$ Sales price decreases by $$0\mathrm{.}40$ per cake.

Show less $A$

$\backslash$table$[[1$a$.$ Sales price increases by $$1,30$ per cake,Break$-$Even Point$],[1$b$.$ Fixed costs increase by $$510$ per month,,cakes$],[1$c$.$ Variable costs decrease by $$0\mathrm{.}26$ per cake.,,cakes$],[1$d$.$ Sales price decreases by $$0\mathrm{.}40$ per cake,,cakes$]]$