10 A company's contribution income statement as follows: TREAT EACH PART INDEPENDENTLY Questions for Reginad Company Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution margin 300,000 Less fixed cost 240,000 Net income 60,000 What is the operating leverage of the company? none of the above 2 05 04 O3 Question 11 A company's contribution income statement as follows: TREAT EACH PART INDEPENDENTLY Questions for Reginad Company Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution margin 300,000 Less fixed cost 240,000 Net income 60,000 What is the current Margin of Safety of the company? O none of the above O 20 percent O 50 percent O 30 percent O 40 percent as - X + A company's contribution income statement as follows: TREAT EACH PART INDEPENDENTLY Questions for Reginad Company Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution margin 300,000 Less fixed cost 240,000 Net income 60,000 Assume that through a more intensive effort by the sales force the company's sales increase by 8 percent next year. By what percentage would you expect net operating income to increase? 02 O none of the above 06 3 04 Question 13 A company's contribution income statement as follows: TREAT EACH PART INDEPENDENTLY Questions for Reginad Company Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution margin 300,000 Less fixed cost 240,000 Net income 60,000 In an effort to increase sales and profits, management is considering the use of a higher quality speaker. The higher quality speaker would increase variable costs by $3 per unit but management could eliminate one quality inspector who is paid a salar of $30,000 per year. The sales manager estimates that the higher quality speaker would increase annual sales by 20 percent. Assuming that the changes are made, what is the expected profit next year? $280,000 $290,000 O $270,000 (240,000) O None of the above