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Cove's Cakes is a local bakery. Price and cost information follows: Required: Calculate Cove's...

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Accounting

Cove's Cakes is a local bakery. Price and cost information follows:
Required:
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 $515 per month.
c. Variable costs decrease by $0.35 per cake.
d. Sales price decreases by $0.70 per cake.
Assume that Cove sold 340 cakes last month. Calculate the company's degree of operating leverage.
Using the degree of operating leverage, calculate the change in profit caused by a 8 percent increase in sales revenue.
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