b. Compute the company's required sales - number of units and dollars - necessary to achieve its budgeted net income for the month of March 20X1. To do so, use the Cost-Volume-Profit model, Targeted NI = [(SP x Q) (VC x Q) FC] x (1 t), described and illustrated on page 16 of the background paper, Management Accounting Concepts.

c. Compute the company's operating leverage ratio using budgeted operating results for the month of March 20X1. As described on page 15 of the background paper, Management Accounting Concepts, the operating leverage ratio is computed as: CM ratio / Net margin ratio, where CM ratio = Unit CM / SP, and Net margin ratio = Net income / Sales.

d. Management is contemplating the expanded advertising expenditures for the month of March 20X1 (see Company Information in previous tab). Assuming management does not change the product's selling price, compute the additional amount of sales - units and dollars - necessary to achieve the company's budgeted net income for the month, if it proceeds with the additional advertising campaign. It may be helpful to review the illustration on pages 17 - 18, ("Estimating Impact of Contemplated Management Decisions") of the background paper, Management Accounting Concepts.

nstructions Using the information about Western Manufacturing Co provided below, complete the following two tabs in this MS Excel Workbook: Cost-volume e-profit (CVP) Analysis prepared in February 20X1 regarding planned operations for month of March 20X Contribution Margin (Full-Absorption vs. Variable Costing Method) Analysis prepared in April 20x1 for completed month of March 20X1 The background paper, Management Accounting Concepts, provides useful guidance for completing this assignment. Based on the results of your CVP Analysis (the first tab following this one), summarize your recommendations to management regarding its contemplated supplemental March 20X1 advertising campaign described below. Limit the length of your response to 100 words Replace the text in this cell with your response Based on the results of your Contribution Margin Analysis (the second tab following this one), explain why the reported results using the full- absorption method and variable costing method differ from each other. (In formulating your response, it may be helpful to review pages 20 22 of the background paper, Management Accounting Concepts, including the illustration on those pages.) Limit the length of your response to 100 words. Replace the text in this cell with your response Company information Number of units of the company's only product Mar. 20X1 Actual Included in inventory on hand at March 1,20X1 8,000 Manufactured during month ended March 31, 20X1 102,000 units Sales for month of March 20X1 105,000 units Budgeted total production and sales for fiscal year ended (FYE) Dec. 31, 20X1 200 Mar. 20X1 Actual Per unit information: Average selling price 140.00 140.00 Variable manufacturing costs Direct materials (DM)