1) Break-even sales and sales to realize operating income

For the current year ended March 31, Kadel Company expects fixed costs of $411,700, a unit variable cost of $46, and a unit selling price of $69.

a. Compute the anticipated break-even sales (units).

b. Compute the sales (units) required to realize operating income of $94,300.

2) a. If Kirwan Company, with a break-even point at $346,800 of sales, has actual sales of $510,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? 1. $ 2. %

b. If the margin of safety for Kirwan Company was 25%, fixed costs were $1,381,875, and variable costs were 75% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) 3) Operating leverage

Asha Inc. and Samir Inc. have the following operating data:

Line Item Description	Asha Inc.	Samir Inc.
Sales	$200,400	$603,000
Variable costs	(80,400)	(361,800)
Contribution margin	$120,000	$241,200
Fixed costs	(70,000)	(107,200)
Operating income	$50,000	$134,000

a. Compute the operating leverage for Asha Inc. and Samir Inc. If required, round to one decimal place. Asha Inc. __________ ??? Samir Inc. __________???

b. How much would operating income increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number.

Company	Dollars	Percentage
Asha Inc.
Samir Inc.