c. Variable costs decrease by $0.26 per cake. Break-Even Point cakes d. Sales price decreases by $0.50 per cake. Break-Even Point cakes 2. Assume that Cove sold 390 cakes last month. Calculate the company's degree of operating leverage. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Degree of Operating Leverage 3. Using the degree of operating leverage calculated in Requirement 2, calculate the change in profit caused by a 11 percent increase in sales revenue. (Round your final answer to 2 decimal places (.e. .1234 should be entered as 12.34%.)) Effect on Profit