Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. c. variable costs decrease by $0.30 per cake. ven

c. Variable costs decrease by $0.30 per cake. ven cakes d. Sales price decreases by...

70.2K

Verified Solution

Question

Accounting

imageimage

c. Variable costs decrease by $0.30 per cake. ven cakes d. Sales price decreases by $0.80 per cake. ven cakes 2. Assume that Cove sold 500 cakes last month. Calculate the company's degree of operating leverage. (Do not round intermediate calculations. Round your answer to 2 decimal places.) egree of Operating 3. Using the degree of operating leverage calculated in Requirement 2, calculate the change in profit caused by a 10 percent increase in sales revenue. (Round your final answer to 2 decimal places (i.e. .1234 should be entered as 12.34%.)) Effect on Profit Cove's Cakes is a local bakery. Price and cost information follows: $ 13.31 Price per cake Variable cost per cake Ingredients Direct labor 2.33 1.04 0.26 $4,549.60 Overhead (box, etc.) Fixed 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 $1.60 per cake Break-Even Point cakes b. Fixed costs increase by $500 per month. reak-Even Point cakes

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students