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2).10 points Voltar Company manufactures and sells a specialized cordless telephone for high electromagnetic radiation environments. The company's contribution format income statement for the most
2).10 points Voltar Company manufactures and sells a specialized cordless telephone for high electromagnetic radiation environments. The company's contribution format income statement for the most recent year is given below Total Per Unit Percent of Sales Sales (20,000 units). $1,200,000 $60 100% 900,000 45 ?% 300,000$15 240,000 QS ?% Exed expenses. eA Net operating Income $ 60,00o Management is anxious to increase the company's profit and has asked for an analysis of a number of tems Compute the company's CM ratio and variable expense ratio. 2. Compute the company's break-even point in both unit sales and dollar sales 24o,000 Prt 3. Assume that next year management wants the company to earn a profit of at least $90,000. How many units will have to be sold to meet this target profit? 4. a. Compute the company's degree of operating leverage at the present level of sales. m b. Assume that through a more intense effort by the sales staff, the company's sales increase by 8% next year. By what percentage would you expect net operating income to increase? Use the degree of operating leverage to obtain your
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