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

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 $$520$ per month.

c$.$ Variable costs decrease by $$0\mathrm{.}32$ per cake.

d$.$ Sales price decreases by $$0\mathrm{.}80$ per cake.

Assume that Cove sold $470$ 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 $12$ percent increase

sales revenue.

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

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 $$520$ per month.

c$.$ Variable costs decrease by $$0\mathrm{.}32$ per cake.

d$.$ Sales price decreases by $$0\mathrm{.}80$ per cake.