Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cortuna scatura Processing man.actures and sale canned and use cost per can zout to stand the nating price of oth cases. Tots do not amount

image text in transcribed
image text in transcribed
Cortuna scatura Processing man.actures and sale canned and use cost per can zout to stand the nating price of oth cases. Tots do not amount to $40.000 Sales are cutad te amount to 147 000 Donecta.com Calculate the lowing Grono Sales Total Variable Caritbutin Margins by the company rele corting to their esante to the drone of conting Internet! The toekom post in na thana thaangastanicating.ruage and as Dague of operang very Besten Point una one company bociantes ales volume and by 28 tynnu pancettage will conting port incrematy what dolu zmoct with operating hoone roomthe day at operating loverage But 102.de Percentage Dolls o comuns ponts $21.000 2. osor unangepas we can cause it was by team w ng wage and the reste portin ustu found that Degree opinga resten portal BGB Tuna Processing manufactures and sells canned tunato restaurants. Variable cost per can amounts to $6 and the selling price of each can is 525 Total annual fixed costs amount to $14,630,000. Sales are estimated to amount to 1 470.000 cans of tuna. Do not enter dolar signs or comma in the input boxes Basund. dolar answeets to the nearest . whale number and cound.BE.units.wr.to the nearest shole numberunkess otherwise indicated. a) Calculate the following values. Gross Sales 5 Total Variable Costs: Contribution Margines Operating profits b) if the company sells according to their estimates, what is the degree of operating leverage? The break-even point in units)? Round the degree to leverage to 2 decimal places Degree of operating beverages Break-even Point (units c) If the company increases the sales volume cans) by 32%, by what percentage will operating profit increase? By what dollar amount will operating income increase? Use the degree of operating leverage Round the percentage increase to 2 decimales Percentage Increase Dollar increases d) if the company spends $28,000 as additional advertising expense (fixed cost), sales volume will increase by 13%, Determine the rew operating leverage and the new break-even point in units. Bound the degree oferctting leverage to 2 decimal laces. Degree of operating leverage Break-even point units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Advanced Principles Of Auditing

Authors: Hugo Romero

1st Edition

1632409372, 978-1632409379

More Books

Students also viewed these Accounting questions