Cost-Volume - Profit 12. Tyrene products manufactures recreational equipme The operating results for the most recent for one of its products a stakeboard are srepresented below I years sales $ 1,875,000 Variable expenses 1,125 000 I Contribution margin 750,000 fixed expenses 600,000 Net Operating income 150,ooo Lud Management is anxious to maintain and perhaps even improve its present level of income for the stakeboards. will Required 1 - (a) The Company's Break-even point for the most Recent year was 40,000 units. Compute the CM per stakeboard (do not sound intermediate calculations) Contribution margin per stakeboard 1 (6) Compute the selling price and Variable expenses per stakeboard (do not round intermediate Calculations, Round your answer to 2 decimal places) Amount Selling price Variable expences per stakeboard per stakeboard 1 (c) Compute the number of stakeboards sold in the most recent year. (Do not round intermediate Calculations) Number of stakeboards 1 (d) Compute the degree of leverage (operating leverage at the level of Sales that you computed in Requirement (1.c) Degree of operating leverage (2). Due to an increase in labour Rates, the company estimates that variable expenses. will increase by $ 3.00 per stakeboard next year. If there change take place and the selling price per stakeboard remains constant, what will be the new CM Ratio and the a new breakeven point in stakeboards. Do not around intermediate calculations % Contribution margin . Unit sales to Break-even point stakeboards (3). Refer to the data in Requirement (2) above. If the expected change in Variable cost takes place, how many stakeboards will have to be sold next year to earn the Net operating Income $ 150,000 as in the most recent year? (do not round intermediate calculations) Number of stakeboards dilla (4). Refer again to the data in Requirement (2) above. The President has decided that the company may have to suise the selling price of its stakeboards. If Tynene products wants to maintain the same CM Ratio as last year. What selling price per stakeboard must it change next year to cover the increased labour Cost. (answer 2 deamal places / do not Round intermediate) (5). Refer to the original data. The company is considering the construction of a new automated plant. The new plant would result in the contribution margin per unit increasing by 60 % but it would cause fixed Cost to increase by 90%. If the new plant is built would be the companys new ratio and new break even point in stakeboards. what Contribution margin Unit Sales to break even point 7 Istakeboards 6. Refer to the data in Requirement (5) above. (2) If the new plant is built, how many stakeboards will have to be sold next year to earn the sanae net operating income $ 150,000 last intermediate calculations) Number of stakeboards. as year. (do not round (b) () Assume that the new plant is constructed and that next year the company manufactures and sells the same number of stakeboards sold in the most recent . a contribution format income statement. (do not sound intermediate Calculations) as year. Prepare Contribution income statement $ (b) (II) Compute the degree of operating leverage (do not around intermediate calculations) Degree of operating leverage [