Coves Cakes is a local bakery. Price and cost information follows:

Price per cake	$ 14.31
Variable cost per cake
Ingredients	2.26
Direct labor	1.17
Overhead (box, etc.)	0.21
Fixed costs per month	4,801.50

Required:

Calculate Coves new break-even point under each of the following independent scenarios:

Sales price increases by $1.90 per cake.

Fixed costs increase by $515 per month.

Variable costs decrease by $0.29 per cake.

Sales price decreases by $0.40 per cake.

Assume that Cove sold 460 cakes last month. Calculate the companys degree of operating leverage.

Using the degree of operating leverage, calculate the change in profit caused by a 10 percent increase in sales revenue.