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Cove's Cakes is a local bakery. Price and cost information follows Price per cake Variable cost per cake Ingredients Direct labor S 13.21 2.21 x,
Cove's Cakes is a local bakery. Price and cost information follows Price per cake Variable cost per cake Ingredients Direct labor S 13.21 2.21 x, etc. Fixed cost per month $3.952.40 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: (Round your answer to the nearest whole number.) a. Sales price increases by $1.10 per cake. Break-Even Point cakes b. Fixed costs increase by $540 per month. Break-Even Point cakes c. Variable costs decrease by $0.42 per cake. Break-Even Point cakes d. Sales price decreases by $0.20 per cake. ak-Even Roint cakes 2. Assume that Cove sold 430 cakes last month. Calculate the company's degree of operating leverage. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Degree of Operating Leverag . Using the degree of operating leverage calculated in Requirement 2, calculate the change in proftt caused by a 7 percent increase in 5ales revenue. (Round your final answer to 2 decimal places (1.e. .1234 should be entered as 12.34 % .) Efect on Profit
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