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. a. Sales price increases by $1.60 per cake. b. Fixed costs increase by $535 per month. c. Variable costs decrease by $0.30 per cake. d. Sales price decreases by $0.70 per cake. 1a. Sales price increases by $1.60 per cake 1b. Fixed costs increase by $535 per month 1c. Variable costs decrease by $0.3 per cake. 1d. Sales price decreases by $0.70 per cake Break-Even Point cakes cakes cakes cakes
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. a. Sales price increases by $1.60 per cake. b. Fixed costs increase by $535 per month. c. Variable costs decrease by $0.30 per cake. d. Sales price decreases by $0.70 per cake. 1a. Sales price increases by $1.60 per cake 1b. Fixed costs increase by $535 per month 1c. Variable costs decrease by $0.3 per cake. 1d. Sales price decreases by $0.70 per cake Break-Even Point cakes cakes cakes cakes
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject - Acounting
Transcribed Image Text: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
$ 13.81
2.29
1.13
0.20
4,279.80
Required:
1. Calculate Cove's new break-even point under each of the following independent scenarios:
a. Sales price increases by $1.60 per cake.
b. Fixed costs increase by $535 per month.
c. Variable costs decrease by $0.30 per cake.
d. Sales price decreases by $0.70 per cake.
2. Assume that Cove sold 435 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 14 percent increase in sales revenue.
Transcribed Image Text: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.
a. Sales price increases by $1.60 per cake.
b. Fixed costs increase by $535 per month.
c. Variable costs decrease by $0.30 per cake.
d. Sales price decreases by $0.70 per cake.
1a. Sales price increases by $1.60 per cake
1b. Fixed costs increase by $535 per month
1c. Variable costs decrease by $0.3 per cake.
1d. Sales price decreases by $0.70 per cake
Break-Even Point
cakes
cakes
cakes
cakes
Required 1
Required 2 >
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