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Consider each case separately: What is the current annual operating income? What is the present breakeven point in revenues? Compute the new operating income or
Consider each case separately: What is the current annual operating income? What is the present breakeven point in revenues? Compute the new operating income or loss for each of the following changes: A $0.06 per unit increase in variable costs. A 20% increase in fixed costs and a 20% increase in units sold. A 40% decrease in fixed costs, a 40% decrease in selling price, a 30% decrease in variable cost per unit, and a 35% increase in units sold. Compute the new breakeven point in units for each of the following changes: A 20% increase in fixed costs A 20% increase in selling price and a $20,000 increase in fixed costs Compute the contribution margin of Wharton Men's Clothing. Compute the contribution margin percentage. Mr. Wharton estimates that he can increase revenues by 25% by incurring additional advertising costs of $15,000. Calculate the impact of the additional advertising costs on operating income. What other actions can Mr. Wharton take to improve operating income
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