Question: Please answer b, c, d, and 3. Thank you! Cove's Cakes is a local bakery. Price and cost information follows: $ 13.31 Price per cake

Cove's Cakes is a local bakery. Price and cost information follows: $ 13.31 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.25 1.08 0.29 $4,166.70 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 $1.60 per cake. Break-Even Point 369 cakes b. Fixed costs increase by $515 per month. Break-Even Point cakes c. Variable costs decrease by $0.28 per cake. Break-Even Point cakes d. Sales price decreases by $0.50 per cake. Break-Even Point cakes 2. Assume that Cove sold 450 cakes last month. Calculate the company's degree of operating leverage. (Do not found intermediate calculations. Round Degree of Operating Leverage 22.50 3. Using the degree of operating leverage calculated in Requirement 2, calculate the change in profit caused by a 12 percent increase in sales revenue. (F should be entered as 12.34%.)) Effect on Profit % References eBook & Resources 28
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
