Question: Need help with question 2 and 3 Cove's Cakes is a local bakery. Price and cost information follows: Required: 1. Calculate Cove's new break-even point



Cove's Cakes is a local bakery. Price and cost information follows: 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 $1.00 per cake. b. Fixed costs increase by $500 per month. Answer is complete and correct. c. Variable costs decrease by $0.35 per cake. Answer is complete and correct. d. Sales price decreases by $0.50 per cake. Answer is complete and correct. 2. Assume that Cove sold 400 cakes last month. Calculate the company's degree of operating leverage. (Roun decimal places.) Answer is complete but not entirely correct. 2. Assume that Cove sold 400 cakes last month. Calculate the company's degree of operating leverage. (Round your answer to 4 decimal places.) Answer is complete but not entirely correct. 3. Using the degree of operating leverage, calculate the change in profit caused by a 10 percent increase in sales revenue. (Do not round your intermediate calculations. Round your final answer to 2 decimal places. (i.e. 1234 should be entered as 12.34%.))
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