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: $ 14.51 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.34 1.03 0.26 $4,569.60 Required: 1. Calculate Cove's new break-even point under each of the following Independent scenarios: a. Sales price increases by $1.40 per cake. b. Fixed costs increase by $480 per month. c. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.20 per cake. 2. Assume that Cove sold 430 cakes last month. Calculate the company's degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 14 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. d. Sales price decreases by $0.20 per cake. 2. Assume that Cove sold 430 cakes last month. Calculate the company's degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 14 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 ES Required 3 Calculate Cove's new break-even point under each of the following independent scena nearest whole number.) a. Sales price increases by $1.40 per cake. b. Fixed costs increase by $480 per month. C. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.20 per cake. 1a. Sales price increases by $1.40 per cake 16. Fixed costs increase by $480 per month 1c. Variable costs decrease by $0.31 per cake 1d. Sales price decreases by $0.20 per cake Break-Even Point cakes cakes cakes cakes Required 2 IC 15.570 ULICUIQUE CUVEJ NEY DICUN CUCI PIRITUCI CUCIT UIMIC IUINITY Independent scenarios: a. Sales price increases by $1.40 per cake. b. Fixed costs increase by $480 per month. c. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.20 per cake. 2. Assume that Cove sold 430 cakes last month. Calculate the company's degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 14 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that Cove sold 430 cakes last month. Calculate the company's degree of oper intermediate calculations. Round your answer to 2 decimal places.) Degree of Operating Leverage Independent scenarios: a. Sales price increases by $1.40 per cake. b. Fixed costs increase by $480 per month. c. Variable costs decrease by $0.31 per cake. d. Sales price decreases by $0.20 per cake. 2. Assume that Cove sold 430 cakes last month. Calculate the company's degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 14 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, calculate the change in profit caused by a 14 revenue. (Round your intermediate values to 2 decimal places. (1.e. 0.1234 should b Effect on Profit %
