Cost-Volunane - Profit , 12. Tyrene products manufactures recreational equipment. The operating results for the most recent for of its products represented below years a stakeboard are one sales Variable expenses Contribution margin Fixed expenses Net operating income $ 1,875,000 1125 000 750,000 600,000 150,ooo Management is anxious to maintain and perhaps even improve its present level of income stakeboards. for the s units. Required 1 - (a) The Company's Break-even point for the most Recent year was 40,000 Compute the CM per stakeboard (do do not sound intermediate calculations) Contribution margin per stakeboard per units 60,0,000 fixed 4900w BEP unts mal 1 (b) Compute the selling price and Variable expenses per stakeboard (do not round intermediate Calculations, Round your answer to 2 decimal places) Total sal Total uputs/ Solat Selling price Total Exp Variable expences Amount 37.5 22.5 per stakeboard per stakeboard Total Jussate 1 (C) Compute the number of stakeboards sold in the most recent year. (Do not sound intermediate calculations) fixed & operating income contribution pu Number of stakeboards 50,000 1 (d) Compute the degree of leverage (operating leverage at the level of Sales that you computed in Requirement (1c) Degree of operating leverage leverage 5 an (please provide Answers from here) Due to increase in labour Rates, the company estimates that variable expenses. will increase by $ 3.00 per stakeboard year. If there change take place and the selling price per stakeboard remains constant, what will be the new CM Ratio and the new breakeven point stakeboards. Do not around intermediate calculations next in Contribution margin Unit sales to Break-even point stakeboards 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 $ 1,50,000 as in the most recent year? (do not round intermediate calculations) Number of stakeboards Refer again to the data in Requirement (2) above. The President has decided that the company may have to rise the selling price of its stakeboards. If Tyrene 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 decimal places / do not Round intermediate) I 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 plant is built, would be the companys new ratio and new break even point in stakeboards. new what Contribution margin Unit Sales to break even point - 7 Istakehoards Refer to the data in Requirement (5) above. (a) If the new plant is built, how many stakeboards will have to be told next year to earn the sanae net operating income $ 150,000 as last year. (do not round intermediate calculations) Number of stakeboards. (b) (1) Assume that the new plant is constructed and that next year the company manufactures and sells the same number of stakeboards as sold in the most recent a contribution format income statement. (do not sound intermediate Calculations) year. Prepare Contribution income statement $ (b) (II) Compute the degree of operating leverage (do not round intermediate calculations Degree of operating leverage [