Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help is greatlly appreciated Cove's Cakes is a local bakery. Price and cost information follows: $ 13.41 Price per cake Variable cost per cake Ingredients

help is greatlly appreciated image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Cove's Cakes is a local bakery. Price and cost information follows: $ 13.41 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.26 1.17 0.30 $3,872.00 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.20 per cake. b. Fixed costs increase by $520 per month c. Variable costs decrease by $0.38 per cake. d. Sales price decreases by $0.30 per cake. 2. Assume that Cove sold 420 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 7 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate Cove's new break-even point under each of the following independent scenarios: (Round your answers to the nearest whole number) a. Sales price increases by $1.20 per cake, b. Fixed costs increase by $520 per month c. Variable costs decrease by $0.38 per cake. d. Sales price decreases by $0.30 per cake. Show less 2. Assume that Cove sold 420 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 7 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate Cove's new break-even point under each of the following independent scenarios: (Round your answers to the nearest whole number.) a. Sales price increases by $1.20 per cake. b. Fixed costs increase by $520 per month. c. Variable costs decrease by $0.38 per cake. d. Sales price decreases by $0.30 per cake. es Show less 1a. Sales price increases by $1.20 per cake 1b. Fixed costs increase by $520 per month 10. Variable costs decrease by $0.38 per cake. 1d. Sales price decreases by $0.30 per cake Break-Even Point cakes cakes cakes cakes Required 2 > 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: 13.41 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.26 1.17 0.30 $3,872.00 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.20 per cake. b. Fixed costs increase by $520 per month c. Variable costs decrease by $0.38 per cake. d. Sales price decreases by $0.30 per cake. 2. Assume that Cove sold 420 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 7 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 420 cakes last month. Calculate the company's degree of operating leverage. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Degree of Operating Leverage 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: 13.41 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.26 1.17 9.30 $3,872.00 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.20 per cake. b. Fixed costs increase by $520 per month. c. Variable costs decrease by $0.38 per cake. d. Sales price decreases by $0.30 per cake. 2. Assume that Cove sold 420 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 7 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Reuired 3 Using the degree of operating leverage, calculate the change in profit caused by a 7 percent increase in sales revenue. (Round your intermediate values to 2 decimal places. (l.e. 0.1234 should be entered as 12,34%)) Effect on Profit %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions