Brightest Edge LLC manufacture and sells a specialized cordless telephone for high electromagnetic radiation environments. The company has provided you the data below for the 2022 fiscal budget. Management is anxious to increase the company's profit and has asked for an analysis of a number of items.

Data

Unit sales 35,000 units

Selling price per unit $105 per unit

Variable expenses per unit $79 per unit

Fixed expenses $420,000

Use the information above to answer the questions below. ROUND CALCULATIONS TO 2 DECIMAL PLACES

What is the company's contribution margin ratio?

Answer 1Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

The break-even point in unit sales is approximately?

Answer 2Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

What is the break-even point in dollar sales?

Answer 3Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

What is the margin of safety in dollars?

Answer 4Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

What is the margin of safety percentage?

Answer 5Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

How much is the net operating income?

Answer 6Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

What is the degree of operating leverage?

Answer 7Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

Using the degree of operating leverage and without changing anything in the original data, calculate the percentage change in net operating income if unit sales increase by 15%

Answer 8Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

Using the degree of operating leverage, what will be the impact to net income if sales decline to 33,250 units?

Answer 9Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

The company wants to change the budget and set a company target for the net operating income to $600,000, what will be the contribution margin in dollars?

Answer 10Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

From question 10 above, what will be the budgeted sales dollars?

Answer 11Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

From question 10 above, what will be the approximate budgeted sales in units?

Answer 12Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

The marketing director has advised that sales may come in 3,200 units higher than budgeted, but would require additional $200,000 in marketing expenses. Traditionally, 70% of marketing expenses relate goes to commission per unit sale and 30% goes to salary. What will be the contribution margin in dollars?

Answer 13Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

With the information from Question 13 above, what will be the contribution margin ratio?

Answer 14Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

With the information from Question 13 above, what will be the target sales required to achieve $600,000 in net operating income?

Answer 15Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

From question 13 above, what cost behavior is the additional $200,000 marketing expense?

Answer 16Choose...$1,017,600.0053.85%1.1739,231 unitsVariable costFixed cost16,154 units27.86 times$4,119,230.77$3,255,0007.5Mixed cost27.86%9.29%$853,200.001.8616,200 units$5,077,215.1924.76%40,000 units$490,000$1,696,153.8575.24%Cannot be determined21.27%$1,020,000.00$1,978,846.15

Assuming the company's actual net operating income for the year was $530,000 which was higher than the target profit from the original budget. The degree of operating leverage was 1.92. What was the actual contribution margin earned by Brightest Edge?