10 19 points Problem 3-24A (Algo) Assessing simultaneous changes in CVP relationships using the equation method LO 3-1, 3-2, 3-3, 3-4, 3-5 Franklin Corporation sells hammocks; variable costs are $73 each, and the hammocks are sold for $128 each. Franklin incurs $327,000 of fixed operating expenses annually. Required a1. Determine the sales volume in units and dollars required to attain a $80,000 profit. a2. Prepare an income statement using the contribution margin format. b. Franklin is considering implementing a quality improvement program. The program will require a $8 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional $37,250 for advertising. Assuming that the improvement program will increase sales to a level that is 5,100 units above the amount computed in Requirement a, prepare a budgeted income statement using the contribution margin format. c. Determine the new break-even point in units and sales dollars as well as the margin of safety percentage, assuming that the quality improvement program is implemented. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Req C Determine the sales volume in units and dollars required to attain a $80,000 profit. Sales volume in units Sales volume in dollars < Req A1 Req A2 > Check my work 19 10 points Franklin Corporation sells hammocks; variable costs are $73 each, and the hammocks are sold for $128 each. Franklin incurs $327,000 of fixed operating expenses annually. Required a1. Determine the sales volume in units and dollars required to attain a $80,000 profit. a2. Prepare an income statement using the contribution margin format. b. Franklin is considering implementing a quality improvement program. The program will require a $8 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional $37,250 for advertising. Assuming that the improvement program will increase sales to a level that is 5,100 units above the amount computed in Requirement a, prepare a budgeted income statement using the contribution margin format. c. Determine the new break-even point in units and sales dollars as well as the margin of safety percentage, assuming that the quality improvement program is implemented. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Req C Prepare an income statement using the contribution margin format. FRANKLIN CORPORATION Income Statement < Req A1 Req B > Check my work 19 Required 10 points a1. Determine the sales volume in units and dollars required to attain a $80,000 profit. a2. Prepare an income statement using the contribution margin format. b. Franklin is considering implementing a quality improvement program. The program will require a $8 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional $37,250 for advertising. Assuming that the improvement program will increase sales to a level that is 5,100 units above the amount computed in Requirement a, prepare a budgeted income statement using the contribution margin format. c. Determine the new break-even point in units and sales dollars as well as the margin of safety percentage, assuming that the quality improvement program is implemented. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Req C Franklin is considering implementing a quality improvement program. The program will require a $8 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional $37,250 for advertising. Assuming that the improvement program will increase sales to a level that is 5,100 units above the amount computed in Requirement a, prepare a budgeted income statement using the contribution margin format. FRANKLIN CORPORATION Income Statement < Req A2 Req C > Show less Check my work 10 19 points Problem 3-24A (Algo) Assessing simultaneous changes in CVP relationships using the equation method LO 3-1, 3-2, 3-3, 3-4, 3-5 Franklin Corporation sells hammocks; variable costs are $73 each, and the hammocks are sold for $128 each. Franklin incurs $327,000 of fixed operating expenses annually. Required a1. Determine the sales volume in units and dollars required to attain a $80,000 profit. a2. Prepare an income statement using the contribution margin format. b. Franklin is considering implementing a quality improvement program. The program will require a $8 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional $37,250 for advertising. Assuming that the improvement program will increase sales to a level that is 5,100 units above the amount computed in Requirement a, prepare a budgeted income statement using the contribution margin format. c. Determine the new break-even point in units and sales dollars as well as the margin of safety percentage, assuming that the quality improvement program is implemented. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Req C Determine the new break-even point in units and sales dollars as well as the margin of safety percentage, assuming that the quality improvement program is implemented. (Do not round intermediate calculations. Round your answers to nearest whole number. Round "Margin of safety" answer to 1 decimal place. (i.e., 0.234 should be entered as 23.4)) Break-even point in units Break-even point in sales dollars Margin of safety % Check my work