E6-4 Analyzing Changes in Price, Cost Structure, Degree of Operating Leverage [LO 6-4, 6-5]

c. Variable costs decrease by $0.42 per cake. cakes d. Sales price decreases by $0.70 per cake. cakes 2. Assume that Cove sold 300 cakes last month. Calculate the company's degree ot operating leverage. (Do not round intermediate calculations. Round your answer to 2 decimal places.) 3. using the degree ot operating leverage calculated in Requirement 2, calculate the change in profit caused by a 13 percent increase in sales revenue. (Round your final answer to 2 decimal places (i.e. .1234 should be entered as 12.34%.))