Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. Calculate the unit contribution margin in dollars and the contribution margin ratio for the company. Note: Round percentage to two decimal places (for example,

image text in transcribedimage text in transcribed

a. Calculate the unit contribution margin in dollars and the contribution margin ratio for the company. Note: Round percentage to two decimal places (for example, round 32.5555% to 32.56% ). Unit contribution margin in dollars q Contribution margin ratio % b. Determine the break-even point in number of baseballs. c. Calculate the dollar break-even point using the contribution margin ratio. Note: Round amount to the nearest whole dollar. d. Determine the company's margin of safety in number of baseballs, in sales dollars, and as a percentage. Note: Round margin of safety percentage to two decimal places (for example, round 32.5555% to 32.56% ). Margin of safety in baseballs: Margin of safety in dollars: \$ Margin of safety percentage: % e. (1) Compute the company's degree of operating leverage. Note: Round amount to two decimal places (for example, round 32.555 to 32.56 ). Degree of operating leverage (2) If sales increase by 30 percent, by what percentage would pre-tax income increase? Note: Round to the nearest whole percentage point (for example, round 24.5% to 25% ). Percentage increase in pre-tax income % lany baseballs must the company sell if it desires to earn $1,096,000 in pretax profit? baseballs company wants to earn $750,000 after tax and is subject to a 40 percent tax rate, how many baseballs must be sold? nany baseballs would the company need to sell to break even if its fixed cost increased by $50,000 ? (Use original data.) baseballs al units would increase by $0.20 for shipping, and fixed cost would increase by $6,000. Based solely on financial information, should the company accept this offer? not use a negative sign with your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Excise Tax Air Transportation IRS Audit Techniques Guide ATG

Authors: Internal Revenue Service

1st Edition

1304112772, 978-1304112774

More Books

Students also viewed these Accounting questions