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

Price per cake	$ 13.81
Variable cost per cake
Ingredients	2.29
Direct labor	1.17
Overhead (box, etc.)	0.30
Fixed costs per month	4,321.50

Required:

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

Sales price increases by $1.40 per cake.

Fixed costs increase by $545 per month.

Variable costs decrease by $0.38 per cake.

Sales price decreases by $0.60 per cake.

Assume that Cove sold 440 cakes last month. Calculate the companys degree of operating leverage.

Using the degree of operating leverage, calculate the change in profit caused by a 6 percent increase in sales revenue.