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Coves Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.91 Variable cost per cake Ingredients 2.33 Direct labor 1.05 Overhead (box, etc.) 0.13 Fixed costs per month 4,992.00 Required: Calculate Coves new break-even point under each of the following independent scenarios: Sales price increases by $1.60 per cake. Fixed costs increase by $475 per month. Variable costs decrease by $0.43 per cake. Sales price decreases by $0.60 per cake. Assume that Cove sold 500 cakes last month. Calculate the companys degree of operating leverage. Using the degree of operating leverage, calculate the change in profit caused by a 14 percent increase in sales revenue.

Calculate Coves 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 $1.60 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.43 per cake. d. Sales price decreases by $0.60 per cake.

Assume that Cove sold 500 cakes last month. Calculate the companys degree of operating leverage. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

Using the degree of operating leverage, calculate the change in profit caused by a 14 percent increase in sales revenue. Note: Round your final answer to 2 decimal places. (i.e. 0.1234 should be entered as 12.34%.)

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