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Exclusive Supplies Limited imprints notepads with logos and sells them in packages. For each package of notepads, the company generates $4.00 of operating income. Its
Exclusive Supplies Limited imprints notepads with logos and sells them in packages. For each package of notepads, the company generates $4.00 of operating income. Its fixed costs per month are $35, 670 and variable costs amount to $0.83 per package. For the month of January, Exclusive Supplies sold 8, 200 packages of notepads. a) Create the contribution margin statement for January Do not enter dollar signs or commas in the input boxes. b) Calculate the company's degree of operating leverage. Round your answer to 2 decimal places. Degree of Operating Leverage: c) Using the company's degree of operating leverage, by what percentage will operating income change if the volume of sales next month will increase to 9, 450 units? Round your answer to 2 decimal places. Percentage increase in sales: % Increase in operating income: % d) What is the breakeven point in units for Exclusive Supplies Limited? Round your answer to the next whole unit. Break even: e) How many units must Exclusive Supplies Limited sell to make an operating income of $42, 800? Round your answer to the next whole unit. Number of Units: f) The company is facing an increase in variable costs of $0.19 per unit. Should the company spend $14, 800 on an advertising campaign if it expects to sell an additional 450 packages? Round the CM per unit to 2 decimal places and all other number to the nearest whole number. Use the negative sign for negative values. Should the company spend the money?: g) Calculate the following items related to margin of safety. Round the margin of safety percentage to 2 decimal places. Round all other answers to the nearest whole number. Margin of Safety (dollars): $ Margin of Safety (units): Margin of Safety Percentage: %
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