16.000 2. He was the man w 21.500 1. Se mere Ben, Variable Castle Stat Contribution Ledense Operating income 1. so that would see the relevant to 10,00. The tongen do not be at the price of food cont can be used calculate the new int variable that would rest in breakouts 10,0 and your data camputation and final war to the nearest out 4. What is margin and contingut calitate degree of eating beverage found your newer to the decimal pem facand by 10 meter world the percent change in posting Income is your data them above in your command round your final pertantown decimal place would be 563 2 Break-Even in Units, Target Income, New Unit variable Cost, Degree of Operating Leverage, Percent Change in Operating Income Reagan, Inc., has developed a chew-proof dog bed--the Tuff-Pup. Fixed costs are $200,000 per year. The average price for the Tuff Pup is $36, and the average variable cost is $23 per unit. Currently, Reagan produces and sells 20,000 Tuff- Pups annually. Required: 1. How many Tuff-Pups must be sold to break even? 16,000 units 2. If Reagan wants to earn $71.500 in profit, how many Tuff-Pups must be sold? 21,500 units Feedback Check My Work 1. See Cornerstone 16.2. 2. Combine desired profit with fixed costs in the formula Prepare a variable-costing Income statement to verify your answer. Reagan, Inc. Variable-Costing Income Statement Sales 774.000 Less: Variable cost Contribution margin Less: Fixed expenses Operating income 3. Suppose that Reagan would like to lower the break-even units to 10,400. The company does not believe that the price or fixed cost can be changed. Calculate the new unit variable cost that would result in break-even units of 10,400, If required, round your intermediate computations and final answer to the nearest cent. 4. What is Reagan's current contribution margin and operating income? Current contribution margin Current operating income Calculate the degree of operating leverage. Round your answer to three decimal places. if sales increased by 10 percent next year, what would the percent change in operating income be? Use your rounded answer to the question above in your computations, and round your final percentage answer to two decimal places (for example, 45.555% would be entered as "45.56"). % What would the new total operating income for next year be? Round your answer to the nearest dollar