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: Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed costs per wonth $13.91 2.30 1.16 0.17 4,549.60 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: o. Sales price increases by $1,90 per cake. b. Fixed costs increase by $535 per month. c. Variable costs decrease by $0.39 per cake. d. Sales price decreases by $0.70 per cake. 2. Assume that Cove sold 460 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 11 percent increase in sales revenue Complete this question by entering your answers in the tabs below. \begin{tabular}{|l|l|l} Required 2 Required 3 \\ \hline \end{tabular} Calculate Cove's new break-even point under each of the following independent scenarios: Note: Round your answers to the nearest whole number. a. Sales price increases by $1.90 per cake. b. Fixed costs increase by $535 per month. c. Variable costs decrease by 50.39 per cake. d. Sales price decreases by 50,70 per cake. Show less A Prey 1 of 4 Next > E6-4 (Algo) Anolyzing 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: Price per cake Variable cost per cake ingredients olrect labor Overhead (box, etc.) kixed costs per month \$ 13.91 2.30 1,10 0.17 4,549.60 Required: 1. Calculate Cove's new break-even point under each of the foliowing independent scenarios: a. Sales price increases by $1,90 per cake: b. Fixed costs increase by $535 per month. c. Variable costs decrease by $0.39 per cake d. Sales price decreases by $0,70 per cake 2. Assume that Cove sold 460 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 11 percent increase in sales revenue Complete this question by entering your answers in the tabs below. Assume that cove sold 460 cakes last month. Calculate the compary's degree of operating loverage. Note: Do not round intermediate calculations. Round your anawer to 2 decimal places. Degree of Opersing tewerage E6-4 (Algo) Anolyzing 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: Price per cake Variable cost per cake Ingredients oirect labor overhead (box, etc.) fixed costs per month $13.91 2.30 1.10 0.17 4,549,60 Required: 1. Calculate Cove's new break-even point under each of the following independent scenatios: o. Sales price increases by $190 per cake. b. Fixed costs increase by $535 per month. c. Variable costs decrease by $0.39 per cake d. Sales price decreases by $070 per cake 2. Assume that Cove sold 460 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 11 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 3 Using the degree of operating leverage, calculate the change in profit caused by a 11 percent increase in sales revenue Note: Round your final answer to 2 decimal places. (i.e, 0.1234 should be entered as 12.34\%.)
