CVPi margn of satety Farmer Ned wants to cash in on the increased demand for ethanol Accordingb, he puichased a com farm in lowa. Ned believes hos camm cop zan be sold to an ethaool pant for sqio per bughel. Variable cost asiociated with srowing and seling a bushel of com is 17.60 . Neds annual fixed cost is 5422,400. 2. (1) What is the break ieven peint is salen dollsis and bushels of corn? (2) If Neis tarmis 3.920 acrec, how many bunhels must he produce per atre to break Ewen? Bunkests ther acre Margin of waty wh bushels busheis VP; operating leverage; income statement Zacine Tire Co. manufactures tires for all terrain vehicles. The tires senf for $60, and wariable cost per tire is 530 ; manthly fixed cost is 51,170,000. What W the breskeven point in units and sales dollars? Bresak-erven point in urits: tires per month Break-evenin sales doliars: 5 b. If Bonnie Rice, the company's CEO, wants the business to earn a pre-taxprofit of 25 percent of revenues, how many tires must be sold each month? c. If the compary is currently selling 52,000 tires monthly, what is the degree of operating leverage? a. 1. if the company can increase sales wolume ty 15 percent above the current level, what will be the increase in net incorme? What will be the new netincorne? Newriet incomve s Ithorease in netincontes 2. Prove your caloulations with an income statement. Note: Do not use negaowes signs with your answers Comprehenstue Compute the anshers to each of the fallowing independents stisationt. (or the cormpacy is s200,000. How many unts of spray mouthwash would orlando Ray sell at the break-even point? 0 , units a 25 pertent pre-tax profit on salesh Note flound your answer ve to the nearest witpole unt for ecample, roynd 61.2 ungs to 62 unts