1-b. Compute the selling price and variable expenses per unit. (Do not round intermediate calculotions. Round your answers to 2 decimal places.) 1.c. Compute the number of units sold in the most recent year. (Do not round intermediote calculations.) 1-d. Compute the degree of operating leverage at the level of sales that you computed in Requirement (1c). b-2. Compute the degree of operating livecoge. (Oo not round imermediste calculations) c. This part of the quostion is not part of your Connect issigrarent. 5. Refer to the original data. The company is considering the construction of a new, autornated plant. The new plant would resuit in the contribution margin per unit increasing by 60%, but it would cause fixed costs to increaset by 90%, if the new plant is buill. what woult be the company's new CM ratio and new break-even point in units? (Do not round intermediate calculations.) 6. Refer to the data in Requirement (5) above. 0. If the new plant is butit, how many units will have to be sold next year to earn the same net operating income, $240.000 as last year? (Do not round intermediate calculations.) b-1. Assume that the new plant is constructed and that next year the company manufactures and sells the same number of units as sold in the most recent year. Prepare a contribution format income statement. (Do not round intermediate calculotions.) 2. Due to an increase in labout rates, the compary estimates that vartable expenses will increase by $300 per unit next your if this change takes place and the selling price per unit remains constant. what wil be the new CM ratio and the new becakeven point in units? (De not round intermediate calculotions) 3. Refer to the data in Requirement (2) above. if the expected clange in variable costs takes place, how many units will have to be sold next year to earn the same net operating income, $240,000, os in the most recent year? (Do not round intermadiate caiculations) 4. Refer again to the data in Requilrement (2) above. The president has decided that the compary may have to ralse the seling puice of its shoes, If Tyrone Products wants to maintain the same CM ratio as last your, what selling price pet unit must it charge neat year to cover the increased labour costs? (Do not round intermedioto calculotions. Round your answer to 2 decimal places) Tyrone Products manufactures footwear. The operating results for the most recent year for one of its products, a sports shoe, are presented below. Management is anxious to maintain and perhaps even improve its present level of income from the sports shoe Required: 1-a. The company's break-even point for the most recent year was 64.000 units (a unit is one pair of shoes) Compute the CM per unit (Do not round intermediate calculations.)
