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4. value 250 points E6-4 Analyzing Changes in Price, Cost Structure, Degree of Operating Leverage [LO 6-4, 6-5 Cove's Cakes is a local bakery. Price and cost information follows 14 21 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, otc) Fixed cost per month 2.31 1.19 0.28 $5.006 40 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: (Round your answer to the nearest whole numb a. Sales price increases by $1.20 per cake. cakes Break Even Point b. Fixed costs increase by $490 per month. cakes Break-Even Point c. Variable costs decrease by S0.32 per cake. Break Even Point cakes d. Sales price decreases by $0.50 per cake Break-Even Point cakes 2. Assume that Cove sold 500 cakes last month. Calculate the company's degree of operating leverage. (Do not round intermediate calculations. Roune Degree of Operating Leverage 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 (Ros % Effect on Profit eBook & Resources References P Type here to search