Answered step by step
Verified Expert Solution
Question
1 Approved Answer
help please! Cove's Cakes is a local bakery Price and cost information follows: 13.61 Price per cake Variable cont per cake Ingredients Direct labor Overhead
help please!
Cove's Cakes is a local bakery Price and cost information follows: 13.61 Price per cake Variable cont per cake Ingredients Direct labor Overhead (box, etc.) Fixed cont per month 227 1.09 0.23 $3,607.20 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.30 per cake. b. Fixed costs Increase by $540 per month c. Variable costs decrease by $0.42 per cake. d. Sales price decreases by $0.60 per cake. 2. Assume that Cove sold 385 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 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 $1.30 per cake. b. Fixed costs Increase by $540 per month. c. Variable costs decrease by $0.42 per cake. d. Sales price decreases by $0.60 per cake. Show less 1. Sales price increases by $1.30 per cake 16. Fixed costs increase by $540 per month 10. Variable costs decrease by 50 42 per cake 10. Sales price decreases by $0.60 per cake Break-Even Point cakes cakes cakes cakes Required Required 2 > Cove's Cakes is a local bakery. Price and cost Information follows: $ 13.61 Price per cake Variable cont per cake Ingredients Direct labor Overhead (box, ete.) Tixed cost per month 2.27 1.09 0.23 $3,607.20 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.30 per cake. b. Fixed costs increase by $540 per month. c. Variable costs decrease by $0.42 per cake, d. Sales price decreases by $0,60 per cake. 2. Assume that Cove sold 385 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 1 Required 2 Required Assume that Cove sold 385 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 Cove's Cakes is a local bakery. Price and cost Information follows: $ 13.61 Price per cake Variable cont per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.27 1.09 0.23 $3,607.20 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.30 per cake. b. Fixed costs Increase by $540 per month. c. Variable costs decrease by $0.42 per cake. d. Sales price decreases by $0.60 per cake. 2. Assume that Cove sold 385 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 1 Required 2 Required 3 Using the degree of operating leverage, calculate the change in profit caused by a 11 percent increase in sales revenue. (Round your intermediate values to 2 decimal places. (le. 0.1234 should be entered as 12.34%.)) Effect on Profil Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started