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Coves Cakes is a local bakery. Price and cost information follows:

Price per cake	$	13.31
Variable cost per cake
Ingredients		2.28
Direct labor		1.10
Overhead (box, etc.)		0.21
Fixed cost per month	$	4,568.40
Required: 1. Calculate Coves new break-even point under each of the following independent scenarios: (Round your answer to the nearest whole number.) a. Sales price increases by $1.70 per cake. Break-Even Point cakes b. Fixed costs increase by $535 per month. Break-Even Point cakes c. Variable costs decrease by $0.35 per cake. Break-Even Point cakes d. Sales price decreases by $0.40 per cake. Break-Even Point cakes 2. Assume that Cove sold 495 cakes last month. Calculate the companys degree of operating leverage. (Do not round intermediate calculations. Round your answer to 4 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 8 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 %

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