Coves 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 Coves new break-even point under each of the following independent scenarios: (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number.)

Time remaining: 3:51:49

5.

value: 1.25 points

Coves 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 Coves new break-even point under each of the following independent scenarios: (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number.)

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 companys degree of operating leverage. (Round your answer to 4 decimal places.)

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.)