Cove’s Cakes is a local bakery. Price and cost information follows:
Cove's Cakes is a local bakery. Price and cost information follows: $ 14.41 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.34 1.15 0.25 $4,374.70 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 cakes b. Fixed costs increase by $505 per month. Break-Even Point cakes cakes c. Variable costs decrease by $0.26 per cake. Break-Even Point cakes d. Sales price decreases by $0.70 per cake. Break-Even Point Bronk-Even cakes cakes 2. Assume that Cove sold 430 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 13 percent increase in sales revenue. (Round your final answer to 2 decimal places (i.e. .1234 should be entered as 12.34%.)) Effect on Profit
Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Use Code FREE15
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlinesOrder Paper Now