Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help ASAP! managerial accounting. thank you :) !!! Cove's Cakes is a local bakery. Price and cost information follows: $ 13.51 Price per cake

please help ASAP! managerial accounting. thank you :) !!!
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: $ 13.51 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Pixed cont per month 2.22 1.06 0.14 $4,439.60 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.60 per cake. b. Fixed costs increase by $535 per month. c. Variable costs decrease by $0.44 per cake, d. Sales price decreases by $0.30 per cake. 2. Assume that Cove sold 460 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 9 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 $1.60 per cake. b. Fixed costs Increase by $535 per month c. Variable costs decrease by $0.44 per cake, d. Sales price decreases by $0.30 per cake. Show less 1a. Salos price increases by $1.60 per cake 16. Fixed costs increase by $535 per month 10. Variable costs decrease by $0.44 per cake. 1d. Sales price decreases by $0.30 per cake Break Even Point cakes cakes cakes cakos RU Required 2 > Required 1 Required 2 Required 3 Calculate Cove's new break-even point under each of the following independent scenario nearest whole number.) a. Sales price increases by $1.60 per cake. b. Fixed costs increase by $535 per month. c. Variable costs decrease by $0.44 per cake. d. Sales price decreases by $0.30 per cake. Break Even Point cakes cakes 1a. Sales price increases by $1.60 per cake 1b. Fixed costs increase by $535 per month 10. Variable costs decrease by $0.44 per cake. 1d. Sales price decreases by $0.30 per cake cakes cakes Roque Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that Cove sold 460 cakes last month. Calculate the company's degree of operating leverage (D Intermediate calculations. Round your answer to 2 decimal places.) Degree of Operating Leverage 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 9 percent increase in 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 to Expert-Tailored 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

Recommended Textbook for

Understanding And Auditing IT Systems Volume 2

Authors: Young-Woon Min

2nd Edition

1257758837, 978-1257758838

More Books

Students also viewed these Accounting questions