Question
18 Eminem (pronounced M&M because of his real name Marshall Mathers) wants to continue rapping but w to make more money (Completely fictional from this
18 Eminem (pronounced M&M because of his real name Marshall Mathers) wants to continue rapping but w to make more money (Completely fictional from this point on) Eminem decides to sell three lies in 2021-a new ip album, Eminem (Instead of M&M) chocolates, and a Slim Shady action figure. In January 2021, the following information is given: Rap Album Sales Variable Cots $500,000 $250,000 Contrib. Margin $250,000 Fixed Costs Net Oper. Income Required: Eminem Chocolates $200,000 $120,000 $80,000 Slim Shady $300,000 $210,000 $90,000 Company Totals $1,000,000 $580,000 $420,000 $294,000 $126,000 a. Determine the break-even points for Eminem's company expressed as sales dollars of his new album, chocolates, and Slim Shady action figures. Feel free to round however you want. (7 points) b. Calculate the margin of safety in dollars for each of the album, chocolates, and Slim Shadys. Do not worry about carrythrough errors, but only if you show your work. (3 points) c. What is the degree of operating leverage at the company? (2 points) What is the company's net income if sales were to increase by 10%? (3 points) HINT: Use the shortcut if you can. Feel free to round however you want. d. Is Eminem's sales mix appropriate? Why or why not? (3 points) ave and Submit to save and submit. Click Save All Answers to save all answers. MacBook Pro
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