Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost...
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Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed costs per month Required: $ 14.11 2.29 1.18 0.25 3,532.60 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.50 per cake. b. Fixed costs increase by $460 per month. c. Variable costs decrease by $0.44 per cake. d. Sales price decreases by $0.20 per cake. 2. Assume that Cove sold 365 cakes last month. Calculate the company's degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 9 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate Cove's new break-even point under each of the following independent scenarios: Note: Round your answers to the nearest whole number. 1a. Sales price increases by $1.50 per cake 1b. Fixed costs increase by $460 per month 1c. Variable costs decrease by $0.44 per cake. 1d. Sales price decreases by $0.20 per cake a. Sales price increases by $1.50 per cake. b. Fixed costs increase by $460 per month. c. Variable costs decrease by $0.44 per cake. d. Sales price decreases by $0.20 per cake. Break-Even Point cakes cakes cakes cakes Required 1 Required 2 Show less A Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed costs per month Required: $ 14.11 2.29 1.18 0.25 3,532.60 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.50 per cake. b. Fixed costs increase by $460 per month. c. Variable costs decrease by $0.44 per cake. d. Sales price decreases by $0.20 per cake. 2. Assume that Cove sold 365 cakes last month. Calculate the company's degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 9 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate Cove's new break-even point under each of the following independent scenarios: Note: Round your answers to the nearest whole number. 1a. Sales price increases by $1.50 per cake 1b. Fixed costs increase by $460 per month 1c. Variable costs decrease by $0.44 per cake. 1d. Sales price decreases by $0.20 per cake a. Sales price increases by $1.50 per cake. b. Fixed costs increase by $460 per month. c. Variable costs decrease by $0.44 per cake. d. Sales price decreases by $0.20 per cake. Break-Even Point cakes cakes cakes cakes Required 1 Required 2 Show less A
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Answer 1a Calculation of Break Even Point Sale Price Per unit 1661 Variable Cost per unit 349 Contri... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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