Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone please help me with question 4 and 5 please B C A Chapter 6: Applying Excel 1 2 3 4 Data Unit sales

can someone please help me with question 4 and 5 please
image text in transcribed
image text in transcribed
image text in transcribed
B C A Chapter 6: Applying Excel 1 2 3 4 Data Unit sales Selling price per unit Variable expenses per unit 5 6 80,000 units 3 40 per unit $ 24 per unit $ 1.152.000 7 Fixed expenses If your formulas are correct, you should get the correct answers to the following questions. (a) What is the break-even in dollar sales? Break-even in dollar sales 2,800,000 (b) What is the margin of safety percentage? Margin of safety percentage 10% (c) Wisat is the degree of operating leverage? (Round your answer to 2 decimal places.) 4 Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like this c A 1 Chapter Applying Excel 2 3 Data 4 Unte 5 Soling price pe un Variable expenses per un 7 rede 96.000 units $ 40 per unit 5 24 per un 5 1152.000 What is net operating comie (Negative amount should be indicated by a minus son) Napelating Incore) b) by what percentage did the net operating come increase 5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro-look cycle would be sold for $15,000 and at that price, Thad estimates 700 units would be sold each year. The variable cost to produce and sell the cycles would be $10,500 per unit. The annual fixed cost would be $2,520,000. a. What is the break-even in unit sales? Break-even in untiles b. What is the margin of safety in dollars? Margin of safety in dollars c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating over Thad is womed about the selling price Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to $12.500 to compete effectively. In that event, Thad would also reduce foed expenses to $2.092.000 by reducing advertising expenses, but he still hopes to sell 700 units per year d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Essentials Of Federal Taxation 2019

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

10th Edition

1260189988, 1260189678, 9781260189674, 978-1259917103, 125991710X, 978-1260190045