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Create a Contribution Format Income Statement for each of the solid state hard drives and calculate Breakeven Point, Margin of Safety, and Degree of Operating
Create a Contribution Format Income Statement for each of the solid state hard drives and calculate Breakeven Point, Margin of Safety, and Degree of Operating Leverage using the statements. \begin{tabular}{l} \hline Sales \\ Variable Cost \\ Contribution Margin \\ Fixed Cost \\ Net Operating Income \\ \hline \\ \hline Breakeven Point (units) \\ \hline Breakeven Point (dollars) \\ \hline Margin of Safety (units) \\ \hline Margin of Safety (dollars) \\ \hline Margin of Safety (\%) \\ \hline Degree of Operating Leverage \\ \hline \end{tabular} \begin{tabular}{l} \hline Sales \\ Variable Cost \\ Contribution Margin \\ Fixed Cost \\ Net Operating Income \\ \hline \\ \hline Breakeven Point (units) \\ \hline Breakeven Point (dollars) \\ \hline Margin of Safety (units) \\ \hline Margin of Safety (dollars) \\ \hline Margin of Safety (\%) \\ \hline Degree of Operating Leverage \\ \hline \end{tabular} Prove these numbers true by applying the change in volume to a new Contribution Format Income Statement. \begin{tabular}{l} \hline Sales \\ Variable Cost \\ Contribution Margin \\ Fixed Cost \\ \hline Net Operating Income \\ \hline \\ \hline Sales \\ \hline Variable Cost \\ \hline Contribution Margin \\ \hline Fixed Cost \\ \hline Net Operating Income \\ \hline \\ \hline Platinum (2 TB) \\ \hline Sales \\ \hline Variable Cost \\ \hline Contribution Margin \\ \hline Fixed Cost \\ \hline Net Operating Income \\ \hline \\ \hline \end{tabular} \begin{tabular}{|l|} \hline Sales \\ Variable Cost \\ Contribution Margin \\ Fixed Cost \\ Net Operating Income \\ \hline Breakeven Point (units) \\ \hline Breakeven Point (dollars) \\ \hline Margin of Safety (units) \\ \hline Margin of Safety (dollars) \\ \hline Margin of Safety (\%) \\ \hline Degree of Operating Leverage \\ \hline \end{tabular} Using the Degree of Operating Leverage only, fill in the information about sales volume increases. \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Silver (500 GB) } \\ \hline Projected Volume Increase & 10% \\ New Net Operating Income & \\ \hline \multicolumn{2}{|c|}{ Gold (1 TB) } \\ \hline Projected Volume Increase & 10% \\ \hline New Net Operating Income & \\ \hline \multicolumn{2}{|c|}{ Platinum (2 TB) } \\ \hline Projected Volume Increase & 30% \\ New Net Operating Income & \\ \hline \end{tabular} Pristine Microware produces and sells different types of solid state hard drives, each varying in quality and storage Margin of Safety, and Degree of Operating Leverage using the statements
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