Question
8. What is the break-even point in unit sales? 9. What is the break-even point in dollar sales? 10. Assuming the increase is within the
8. What is the break-even point in unit sales?
9. What is the break-even point in dollar sales?
10. Assuming the increase is within the relevant range, how many units must be sold to achieve a target profit of $15,300?
12. What is the degree of operating leverage? (Round your answer to 2 decimal places.)
13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? The increase in sales is within the relevant range. (Round your intermediate calculations and final answer to 2 decimal places.)
Required information [The following information applies to the questions displayed below] Income Statement 85,000 59,500 Sales (1,000 units) Variable expenses Contribution margin Fixed expenses 25,500 20,400 5,100 Net operating income 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,750, and unit sales increase by 250 units, what would be the net operating income? The new sales volume is within the relevant range. Net operating income 11. What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars % Margin of safety percentage
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