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Need solved ASAP with formula used thanks! E6.4 Analyzing Changes in Price, Cost Structure, Degree of Operating Levege LO 6-4,6-5 Cove's Cakes is a local
Need solved ASAP with formula used thanks!
E6.4 Analyzing Changes in Price, Cost Structure, Degree of Operating Levege LO 6-4,6-5 Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake S 13.61 Ingredients Direct labor 2.30 1.07 0.17 $4,732.90 Overhead (box, etc.) Flxed 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 $1.80 per cake. b. Fixed costs increase by $480 per month Cabke c. Variable costs decrease by $0.43 per cake. Break d. Sales price decreases by $0.70 per cake. 2. Assume that Cove sold 480 cakes last month. Calculate the company's degree of operating leverage. (Do not round intermediate calculations. Round your answer to 2 decimal places.) of 3. Using the degree of operating leverage calaulated in Requirement 2, calculate the change in profit caused by a 12 percent increase in sales revenue, (Round your final answer to 2 decimal places (i.e..1234 should be entered as 12.34%.)) Effect oStep by Step Solution
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