Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help:):):):)):):) Cove's Cakes is a local bakery. Price and cost information follows: Required: 1. Calculate Cove's new break-even point under each of the following

please help:):):):)):):)
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: Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.90 per cake. b. Fixed costs increase by $535 per month. c. Variable costs decrease by $0.39 per cake. d. Sales price decreases by $0.30 per cake. 2. Assume that Cove sold 410 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 13 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Calculate Cove's new break-even point under each of the following independent scenarios: Note: Round your answers to the nearest whole number. a. Sales price increases by $1.90 per cake. b. Fixed costs increase by $535 per month. c. Variable costs decrease by $0.39 per cake. d. Sales price decreases by $0.30 per cake. 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.90 per cake. b. Fixed costs increase by $535 per month. c. Variable costs decrease by $0.39 per cake. d. Sales price decreases by $0.30 per cake. 2. Assume that Cove sold 410 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 13 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Calculate Cove's new break-even point under each of the following independent scenarios: Note: Round your answers to the nearest whole number. a. Sales price increases by $1.90 per cake. b. Fixed costs increase by $535 per month. c. Variable costs decrease by $0.39 per cake. d. Sales price decreases by $0.30 per cake. Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.90 per cake. b. Fixed costs increase by $535 per month. c. Variable costs decrease by $0.39 per cake. d. Sales price decreases by $0.30 per cake. 2. Assume that Cove sold 410 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 13 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Using the degree of operating leverge, calculate the change in profit caused by a 13 percent increase in sales revenue. Note: Round your final answer to 2 decimal places. (i.e, 0.1234 should be entered as 12.34%.)

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

New Auditors Guide To Internal Auditing

Authors: Bruce R. Turner

1st Edition

1634540549, 978-1634540544

More Books

Students also viewed these Accounting questions