2.

Naumann Corporation produces and sells a single product. Data concerning that product appear below: Percent of Per Unit Sales Selling price Variable expenses $280 100% 20% 56 Contribution margin $224 80% Fixed expenses are $200,000 per month. The company is currently selling 1,500 units per month Required: Management is considering using a new component that would increase the unit variable cost by $76. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 700 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected? (Negative amounts should be indicated by a minus sign.) Change in net operating income Mcdale Inc. produces and sells two products. Data concerning those products for the most recent month appear below: Product Product I49V Z50U Sales $52,000 $57,000 Variable expenses $14,000 $26,330 The fixed expenses of the entire company were $39,060. The break-even point for the entire company is closest to: Alpha Corporation reported the following data for its most recent year: sales, $530,000; variable expenses, $280,000; and fixed expenses, $200,000. The company's degree of operating leverage is closest to: Majid Corporation sells a product for $125 per unit. The product's current sales are 40,900 units and its break-even sales are 31,605 units. What is the margin of safety in dollars