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5. What is the variable cost per box of muesli? 6. What is the contribution margin per box of muesli? 7. How many boxes of cereal does Muesli AG need to sell to break even? 8. What will be the sales revenue at the breakeven point? Scenario 2 Let's look at what would happen if Muesli AG sells 40,000 boxes of cereal during the time period instead of 30,000 . 9. What is the contribution margin ratio (rounded to 2 decimal points)? 10. What is the variable expense ratio (rounded to 2 decimal points)? 11. What is the net operating income? 12. What is the profit margin (net operating income percentage)? 13. What is the sales price per box of muesli? 14. What is the variable cost per box of muesli? 15. What is the contribution margin per box of muesli? 16. What is the margin of safety in units (boxes of muesli)? 17. What is the margin of safety as a percentage? Scenario 3 Let's look at what would happen if Muesli AG sells 20,000 boxes of cereal during the time period instead of 30,000 . We'll also look at the break even point and how many boxes of cereal Muesli AG will need to sell to earn a desired profit. 18. What is the net operating income? 19. What is the profit margin (net operating income percentage)? 20. How many boxes of cereal does Muesli AG need to sell to earn a profit of 50,000 ? 21. If the net operating income is 50,000, what will be the sales revenue amount? Scenario 4 Start from the original contribution margin statement. The Marketing Department would like to run a special promotion to increase sales in the grocery stores in the Southern region. They believe that by decreasing the price of a box of muesli by 0.10, that sales will increase by 10%. 22. If the Marketing Department's assumptions are true, what will be the net operating income? Should Muesli AG go ahead with the promotion? 23. How does the break even point with the sales promotion in place compare to the break even point you originally calculated? 24. Compare the contribution margin ratio in this scenario to the contribution margin ratio in scenario 1 . What caused the change? Scenario 5 Start from the original contribution margin. The Marketing Department has discovered during their market research that customers in the West region prefer fruitier cereals. They have talked with Production and Purchasing and calculated that 5. What is the variable cost per box of muesli? 6. What is the contribution margin per box of muesli? 7. How many boxes of cereal does Muesli AG need to sell to break even? 8. What will be the sales revenue at the breakeven point? Scenario 2 Let's look at what would happen if Muesli AG sells 40,000 boxes of cereal during the time period instead of 30,000 . 9. What is the contribution margin ratio (rounded to 2 decimal points)? 10. What is the variable expense ratio (rounded to 2 decimal points)? 11. What is the net operating income? 12. What is the profit margin (net operating income percentage)? 13. What is the sales price per box of muesli? 14. What is the variable cost per box of muesli? 15. What is the contribution margin per box of muesli? 16. What is the margin of safety in units (boxes of muesli)? 17. What is the margin of safety as a percentage? Scenario 3 Let's look at what would happen if Muesli AG sells 20,000 boxes of cereal during the time period instead of 30,000 . We'll also look at the break even point and how many boxes of cereal Muesli AG will need to sell to earn a desired profit. 18. What is the net operating income? 19. What is the profit margin (net operating income percentage)? 20. How many boxes of cereal does Muesli AG need to sell to earn a profit of 50,000 ? 21. If the net operating income is 50,000, what will be the sales revenue amount? Scenario 4 Start from the original contribution margin statement. The Marketing Department would like to run a special promotion to increase sales in the grocery stores in the Southern region. They believe that by decreasing the price of a box of muesli by 0.10, that sales will increase by 10%. 22. If the Marketing Department's assumptions are true, what will be the net operating income? Should Muesli AG go ahead with the promotion? 23. How does the break even point with the sales promotion in place compare to the break even point you originally calculated? 24. Compare the contribution margin ratio in this scenario to the contribution margin ratio in scenario 1 . What caused the change? Scenario 5 Start from the original contribution margin. The Marketing Department has discovered during their market research that customers in the West region prefer fruitier cereals. They have talked with Production and Purchasing and calculated that