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required number 1 (a,b,c,and d) Cove's Cakes is a local bakery. Price and cost information follows: Required: 1. Calculate Cove's new break-even point under each
required number 1 (a,b,c,and d)
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. Soles price increases by $1.10 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.33 per cake. d. Sales price decreases by $0.60 per cake. 2. Assume that Cove sold 390 cakes lost month. Calculote the company's degree of operating leverage 3. Using the degree of operating leveroge, calculate the change in profit caused by a 11 percent increase in sales revenue. 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 $1.10 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.33 per cake. d. Sales price decreases by $0.60 per cake Step by Step Solution
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