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1a. What is the product's CM ratio? 1b. Compute the number of units sold. 1c.Compute break-even point in unit sales 1d.Compute break-even point in dollar
1a. What is the product's CM ratio? 1b. Compute the number of units sold. 1c.Compute break-even point in unit sales 1d.Compute break-even point in dollar sales 1e.Compute margin of safety in dollar sales. 1f.Compute margin of safety in unit sales. 2.If this year's sales is going to increase by $80,000 and fixed assets do not change, how much will net operating income increase? 3a.What is the degree of operating leverage based on last year's sales? Round your answers to 2 decimal 3b.If this year's sales increase by 15%, using the previous year's degree of operating leverage, what percentage increase in net operating income will the company realize this year? 5.The sales manager is convinced that a 5% reduction in the selling price, combined with a $30,000 increase in advertising, would increase this year's unit sales by 25%. If this is implemented, what would be this year's ... 5a.Total Sales 5b.New Contribution Margin 5c.Fixed expenses 5d.Net Operating Income 5e.Break Even point, unit sales
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