Chrome File Edit View History Bookmarks Profiles Tab Window Help L ? Q 2 . Thu Feb 16 6:31 PM . Question 1 - Proctoring En 8 X + + + C . gerproctorio.com/secured@lockdown Maps Ty smith learning solus Events - Glean @ Organizational be. Managerial Accou Proctoring Enabled: Midterm Saved Help Save & Exit Submit unit, and fixed expenses total $220,000 per year. Its operating results for last year were as follows: Sales (24,000 units) $ 480, 000 Variable expenses 144, 000 Contribution margin 336 , 00 Fixed expenses 220,000 Operating income 116,000 20 points Required: 8 02 58:14 Answer each question independently based on the original data: 1. What is the product's CM ratio? eBook 2. Use the CM ratio to determine the break-even point in sales dollars 3. Assume this year's total sales Increase by $55,000. If the fixed expenses do not change, how much will operating income increase? Assume that the operating results for last year were as in the question data. 4-a. Compute the degree of operating leverage based on last year's sales. 4-b. The president expects sales to increase by 20% next year. Using the degree of operating leverage from last year, what percentage increase in operating income will ating income will the company realize this year? Calculate the dollar increase in operating income. 5. The sales manager is convinced that a 10% reduction in the selling price, combined with a $28,000 increase in advertising, would ncrease this year's un a. If the sales manager is right, what would be this year's operating income if his ideas are implemented? b. If the sales manager's ideas are implemented, how much will operating income increase or decrease over last year? 5. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1 per unit. He thinks that this move, combined with some increase in advertising, would increase this y arn the same these this year's unit sales by 25%. How much could the president increase this year's advertising expense and still earn the same $116,000 operating income as last year? 80 ese F2 F3 DI FIO F12 O de W # 00 delete W m R T Y U O P tab A S D G caps lock A J K return Z X C B M shift shift fn control option command command option