Cove's Cakes is a local bakery. Price and cost information follows:Price per cakeVariable cost per cakeIngredientsDirect laborOverhead (box, etc.)Fixed costs per monthRequired:1. Calculate Cove's new break-even point under each of the following independent scenarios:a. Sales price increases by $1.10 per cake.b. Fixed costs increase by $515 per month.c. Variable costs decrease by $0.30 per cake.d. Sales price decreases by $0.50 per cake.2. Assume that Cove sold 485 cakes last month. Calculate the company's degree of operating leverage.3. Using the degree of operating leverage, calculate the change in profit caused by a 9 percent increase in sales revenue.Required 1$ 13.012.311.070.164,356.20Complete this question by entering your answers in the tabs below.Required 2Required 3Calculate 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 $1.10 per cake.b. Fixed costs increase by $515 per month.c. Variable costs decrease by $0.30 per cake.d. Sales price decreases by $0.50 per cake.Show lessCh

Introduction:-1)Break-even point point means, where no profit or loss2)At Break-even point point,…

Answered: Cove's Cakes is a local bakery. Price…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...

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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 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.80 per cake. b. Fixed costs increase by $505 per month. c. Variable costs decrease by $0.37 per cake. $ 13.61 2.27 1.05 0.17 4,351.60 d. Sales price decreases by $0.50 per cake. 2. Assume that Cove sold 450 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 15 percent increase in sales revenue. 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. 1a Salas nrice increases hy $1 A0 ner raka a.…
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.01 Variable cost per cake Ingredients 2.25 Direct labor 1.14 Overhead (box, etc.) 0.20 Fixed costs per month 3,334.40 Required: 1.Calculate Cove’s new break-even point under each of the following independent scenarios: a.Sales price increases by $1.20 per cake. b.Fixed costs increase by $520 per month. c.Variable costs decrease by $0.45 per cake. d.Sales price decreases by $0.50 per cake. 2.Assume that Cove sold 335 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 5 percent increase in sales revenue
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.11 Variable cost per cake Ingredients 2.30 Direct labor 1.17 Overhead (box, etc.) 0.16 Fixed cost per month $ 3,602.40 Required: 1. 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 $475 per month. c. Variable costs decrease by $0.37 per cake. d. Sales price decreases by $0.50 per cake. 2. Assume that Cove sold 405 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 11 percent increase in sales revenue. rev: 10_04_2019_QC_CS-184582 Next Visit question map Question4of7Total4 of 7 Prev
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 Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety in sales dollars if it currently sells 360 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $1,900 in profit. Required 1 Required 2 $13.81 Complete this question by entering your answers in the tabs below. 2.28 1.07 0.14 3,302.40 Required 3 Break-Even Units Break-Even Sales Dollars Determine Cove's break-even point in units and sales dollars. Note: Round your Break-Even Units answer to the nearest whole number. Round your other intermediate cal sales dollars answer to 2 decimal places. Cakes
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.21 Variable cost per cake Ingredients 2.31 Direct labor 1.07 Overhead (box, etc.) 0.23 Fixed cost per month $ 3,456.00 Required: 1. Calculate Cove’s new break-even point under each of the following independent scenarios: a. Sales price increases by $1.70 per cake. b. Fixed costs increase by $470 per month. c. Variable costs decrease by $0.39 per cake. d. Sales price decreases by $0.80 per cake. 2. Assume that Cove sold 380 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 13 percent increase in sales revenue. Using the degree of operating leverage, calculate the change in profit caused by a 13 percent increase in sales revenue. (Round your intermediate values to 2 decimal places. (i.e. 0.1234 should be entered as 12.34%.)) I am having…
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.71 Variable cost per cake Ingredients 2.23 Direct labor 1.04 Overhead (box, etc.) 0.17 Fixed cost per month $ 4,724.20 Required: 1. Calculate Cove’s new break-even point under each of the following independent scenarios: a. Sales price increases by $1.30 per cake. b. Fixed costs increase by $535 per month. c. Variable costs decrease by $0.36 per cake. d. Sales price decreases by $0.50 per cake. 2. Assume that Cove sold 480 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 12 percent increase in sales revenue.
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.71 Variable cost per cake Ingredients 2.23 Direct labor 1.04 Overhead (box, etc.) 0.17 Fixed cost per month $ 4,724.20 Required: 1. Calculate Cove’s new break-even point under each of the following independent scenarios: d. Sales price decreases by $0.50 per cake. 2. Assume that Cove sold 480 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 12 percent increase in sales revenue.
Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients Direct labor $ 13.21 2.25 1.04 Overhead (box, etc.) 0.11 Fixed costs per month 3,335.40 ok Required: ences 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 $465 per month. c. Variable costs decrease by $0.38 per cake. d. Sales price decreases by $0.30 per cake. 2. Assume that Cove sold 355 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that Cove sold 355 cakes last month. Calculate the company's degree of operating leverage. Note: Do not round intermediate calculations. Round your answer to 2 decimal…
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 $ 14.01 2.25 1.06 0.12 4,443.60 Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety in sales dollars if it currently sells 520 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $2,000 in profit.
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 cost per month $ 14.41 2.24 1.16 0.25 $4,842.00 Required: 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety if it currently sells 540 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $2,100 in profit. tA

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