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E6-4 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:

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E6-4 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: $ 13.51 Price per cake Variable cost per cake 2.20 1.08 0.13 $3,434.00 Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 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 $1.90 per cake cakes b. Fixed costs increase by $460 per month. eak-Even Pont cakes

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