3 and 4

your own. You need a pencil and a calculator astructions: The work on this test is expected to be abel your answers clearly in the section below each problem. Test has a value of 15 points 10 ponts votar company manufactures and sees a specutzed cordless telephone for high electromagnetic radiation environments. The company's contribution format income statement for the most recent year is given below 'duga mt-, Total Per Unit Percent of Sales $1.200,000 $60 45 Sales (20,000 wnits Vartable expenses Contribution margin Fxed expenses.. Net operating income 2 00,000 300,000 $15 240,000 7% ch S 60,000 5600 Management is anxious to increase the company's profit and has asked for an analysis of a number of tems pute the company's CM ratio and variable expense ratio urie sales and dollar sales r 200 00o ny units will have to be sold to meet this target profit? Assume that next year management wants the company to earn least $90,000. HowU 000r a Compute the company's deg leverage at the present b. Assume that through of operating leverage to obtain your answer. level of sales SDO 300000 intense e the sales staff, the 1202,00 company's sales increase by 8% next year. By what percentage would you expect net operating income to increase? Use the degreeOS0 auq,0002 1,060 Sx 21 0,000 81000