3. Dynamic Designs has fixed costs of $380,000 and produces one graphic arts product with a selling price of $80 and variable costs of $42 per unit. The firms maximum production capacity is 20,000 units, and it anticipates selling 15,000 units.

1. What will be Dynamics expected operating income based on 15,000 units sold?
2. If sales increase to the firms maximum production capacity, what will be its operating income?
3. What will sales revenue levels have to be to reach managements operating income goal of $342,000?
4. How much will this be in required unit sales?

4. Minke Medical Machines sells three types of hospital equipment. Information on these machines is as follows:

Xray 50% of total sales Unit contribution margin of $600

MRI 30% of total sales Unit contribution margin of $400

CT Scan 20% of total sales Unit contribution margin of $700

5. Total fixed costs for the year are $2,240,000.Based on this information, what would the expected break-even point for Minke Medical Machines be for the year?

1. Laminex Ltd. manufactures a coffee table that sells for $250 per unit. The company has variable costs of $150 per unit and total fixed costs of $100,000 per period.
2. What is the break-even point in terms of units sold?
3. If current sales levels are 1,200 units, what is the margin of safety in sales revenue dollars?
4. If current sales levels are 1,200 units, what is Laminexs degree of operating leverage?

6. Clemens Business Consulting provides management-consulting evaluations for clients at a price of $15,000 upon completion. Clemens has variable costs of $10,000 per evaluation and fixed costs of $90,000 per month. Last month, Clemens had an operating income of $21,000. Clemens has an effective tax rate of 20%. If Clemens would like to attain its net operating income goal of $80,000 next month, how many consulting evaluations will the firm need to complete?