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Eliza Corp has provided the following forecast information for its Dog Product for 2019: Table 1: Source data for the Dog Product for 2019 Selling

Eliza Corp has provided the following forecast information for its Dog Product for 2019:

Table 1: Source data for the Dog Product for 2019

Selling price per unit

$260.00

Variable cost of goods sold per unit

$160.00

Fixed manufacturing costs

$8,000,000

Fixed selling and admin costs

$4,000,000

Units produced and sold

200,000

Sensitivity analysis assessing the impact of operating leverage on net income.

Analysis of the change in net income from the following three what-if scenarios: What is the total monthly net income if sales increase by 50%? What is the total monthly net income if sales increase by 20%? What is the total monthly net income if sales decrease by 50%?

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