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E 6 - 4 ( Algo ) Analyzing Changes in Price, Cost Structure, Degree of Operating Leverage [ LO 6 - 4 , 6 -

E6-4(Algo) Analyzing Changes in Price, Cost Structure, Degree of Operating Leverage [LO 6-4,6-5]
Cove's Cakes is a local bakery. Price and cost information follows:
\table[[Price per cake,],[Variable cost per cake,13.91],[Ingredients,2.34],[Direct labor,1.09],[Overhead (box, etc.),0.15],[Fixed costs per month,4,028.70
Required 2-assume that cove sold 410 K last month calculate the company degree of operating leverage
Required 3 Says - using the degreeof operating leverage,calculate the change and profit caused by a 15% increase in sales revenue
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