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Can someone please check my work and help answer the last 3. please and thank you. Your Name Member Name Member Name Member Name Requirement
Can someone please check my work and help answer the last 3. please and thank you.
Your Name Member Name Member Name Member Name Requirement #6-What is the Margin of Safety, if expected sales is $2,000,000? NIKE has been selling the new sneakers for six (6) months. The Shoe Dept. Manager wants to know what the total cost would be for 60,000 sneakers using the following Margin of Safety Requirement #7-What is the Margin of Safety Ratio? Month Units Cost NIKE is deciding whether to produce a new sneaker designed for long-distance runners. In orderto make a final decision, NIKE needs you to create a CVP income statement using the following information anuary 36,000 $1,188,000 38,000 $1,500,000 72,000 2,260,000 65,000 2,150,000 83000 2,504,000 79,000 2,685,000 Margin of Safety Ratio Show as a percentage, round to the nearest whole p March April May une Sales Revenue Cost of Goods Sold Gross Profit Selling and Admin Expenses Net Operating Income 34,350,000 19,038,000 15,312,000 10,563,000 4,749,000 Requirement 14-Use the High-Low Method to Cakulate the following: COGS Fixed Cost Percentage S& A Fixed Cost Percentage 45% $28.00 Roud to 2 decimas) 55% Fixed Cost $180,000 Requirement 1-Complete the CVP Income Statement Total Mixed Cost for 60,000 sneakers $1,860,000 Sales Revenue Variable Cost Contribution Margin Fixed Cost Net Operating Income $34,350,000.00 $15,224,250.00 $19,125,750.00 $14.376,750.00 $4,749,000.00 Requirement u5-The selling price is $75 per pair of sneakers. Using the information from Req.A above and the $75 sales price: First, calculate how many units & sales dollars are required to break-even. Then caculate how much revenue (in sales dollars) is needed to earn a profit of $1,500,000. Requirement 2-Calculate the Contribution Margin Ratio. Show as a percentage, round to the nearest whole percent) Contribution Margin Ratio Break-even units (round up to a whole unit) 3,830 56% Use the Breakeven units calculated above to determine BE sales revenue Requirement M3-Cakculate the Degree of Operation Leverage. Round to 2 decimas) Degree of Operating Leverage Required dollars to break-even- $2,680,851 4.03 Again, refer to information above (from Requirement WS) Use the CM Ratio approach to determine: Sales dollars required to earn $1,500,000 profitStep by Step Solution
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