Question
A AME ENGAGE Kevin Gui's Furniture is a company producing high-end quality furniture for home and offices. The following revenues and cost data for 2022
A AME ENGAGE Kevin Gui's Furniture is a company producing high-end quality furniture for home and offices. The following revenues and cost data for 2022 are: Revenues Cost of goods sold (30% of sales) Gross Margin Operating costs: Salaries (Fixed) Sales commissions (10% of sales) Depreciation of equipment and fixtures Store rent ($2,900 per month) Other operating costs Operating profit (loss) $494,000 $148,200 $345,800 $149,000 $49,400 $13,000 $34,800 $43,580 $289,780 $56,020 Mr. Kevin, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $34,580 variable costs, which vary with sales volume, and $9,000 (fixed) costs. Do not enter dollar signs or commas in the input boxes. a) What is the contribution margin of Kevin Gui's Furniture? Contribution margin: b) what is the contribution margin percentage? c) Mr kevin estimates that he can increase revenue by 20 % by incurring addtional adversting cost of 17000 as a result how much will be operating profit
incremental revenue? incremental contribution margin? incremental fixed cost? incremental operating profit? operating profit at 20% increased revenue?
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