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D. Calculate MVP's current breakeven point in both units (rounding up to nearest whole unit) and dollars (rounded to nearest whole dollar): Units: n/a Dollars

D. Calculate MVP's current breakeven point in both units (rounding up to nearest whole unit) and dollars (rounded to nearest whole dollar):
Units: n/a
Dollars (use the Contribution Margin Ratio to calculate): n/a
E. Redo MVP's Contribution Margin Income Statement using the Vice President of Sales (VP) suggestions and projected increase in sales volume below (all amounts should be a formula/link rounding per unit amounts to 2 decimal places:
Reduce selling price by: 5.00%
Increase advertising costs by: $ 4,950
Projected sales volume increase: 25.00%
Total Units Amount
Per Unit n/a (round up)
Sales n/a n/a Hint: This amount represents the new selling price as recommended by the VP.
Variable Costs:
Direct Materials n/a n/a Hint: Per unit variable costs are the same as the original income statement as the variable cost per unit remains
Direct Labor n/a n/a constant with changes in volume. However, total variable costs will change.
Variable Manufacturing Overhead n/a n/a
Sales Commissions n/a n/a
Shipping n/a n/a
Variable Billing n/a n/a
Total Variable Costs n/a n/a
Contribution Margin n/a n/a
Fixed Costs:
Fixed Manufacturing Overhead n/a
Advertising n/a Hint: This amount represents the new advertising costs as recommended by the VP.
Sales and Admin. Salaries n/a
Fixed Billing n/a
Total Fixed Costs n/a
Net Operating Income (Loss) #N/A
F. Using the budgeted contribution margin income statement in part E. above, calculate the following:
a. Breakeven in units: #N/A (round up)
b. Operating Leverage Multiplier: #N/A (round two decimal places)
Given a sales volume increase of 8%, operating income will increase by:
c. Percent: #N/A (round four decimal places)
d. Dollars: #N/A

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