H Lab 2: Cost-Volume-Profit Saved 12 Tyrene Products manufactures recreational equipment The operating results for the most recent year for one of its products, a skateboard, are presented below. Sales Variable expenses Contribution margin Fixed expenses Net operating income 00:12:41 $ 1,175.000 1, 129,00 750, 600,000 5 150.000 COOK Management is anxious to maintain and perhaps even improve its present level of income from the skateboards Required: 1-0. The company's break even point for the most recent year was 40.000 units compute the CM per skateboard. (Do not round intermediate calculations.) Contribution margin per skateboard 1-b. Compute the selling price and variable expenses per Skateboard (Do not round Intermediate calculations, Round your answers to 2 decimal places.) Amount skateboard Selling price NAL ht 12 of 14 MH Lab 2: Cost Volume-Profit Saved 12 1-b. Compute the selling price and variable expenses per skateboard. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Amount 00:12:20 Selling poco Vannible expense por skateboard per skateboard eli 1-c. Compute the number of skateboards sold in the most recent year. (Do not round intermediate calculations.) Number of skateboards 1-d. Compute the degree of operating leverage at the level of sales that you computed in Requirement (1) Degree of operating leverage BO MH Lab 2: Cost Volume Profit Saved 12 2. Due to an increase in labour rates, the company estimates that variable expenses will increase by $3.00 per skateboard next year. It this change takes place and the selling price per skateboard remains constant , what will be the new CM ratio and the new break-even point in skateboards? (Do not round intermediate calculations.) 8 00:12:22 Contribution margin Unit sales to break even point Book Skateboards 3. Refer to the data in Requirement (2) above the expected change invariable costs takes place, how many skateboards will have to be sold next year to eam the same net operating to come. Sis0 000 as in the most recent year? (Do not round intermediate calculations.) Number of skateboards 4. Refer again to the data in Regulrement (2) above. The president has decided that the company may have to raise the selling price of its skateboards. If Tyrene Products wants to maintain the same Mailloas las year what selling price per skateboard must it charge next year to cover the increased labour costs? (Do not round intermediate calculations. Round your answer to 2 decimal places.) ME araw MH Lab 2: Cost-Volume-Profit Save 12 4. Refer again to the data in Requirement (2) above. The president has decided that the company may have to raise the selling price of its skateboards. If Tyrene Products wants to maintain the same CM allows last year what selling price per skateboard must it charge next year to cover the increased labour costs? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) 8 00:12:11 Selling price mook 5. Refer to the original data. The company is considering the construction of a new, automated plant. The new plant would result in the contribution margin per unit increasing by 60%, but it would cause fixed costs to increase by 90%. If the new plant is bullt, what would be the company's new CM ratio and new break-even point in skateboards? (Do not round Intermediate calculations.) 98 Contribution margin Unil sales to break-even point skateboards 6. Refer to the data in Requirement (5) above C w MH Lab 2: Cost-Volume-Profit Savcd 12 6. Refer to the data in Requirement (5) above 6. If the new plant is built, how many skateboards will have to be sold next year to earn the same net operating Income $150,000, as last year? (Do not round Intermediate calculations.) 00:1157 Number of skateboards eBook b-1. Assume that the new plant is constructed and that next year the company manufactures and sells the same number of skateboards as sold in the most recent yeat Prepare a contribution format income statement (Do not round intermediate calculations.) Contribution Income Statement S 0 SHE (Mc (Graw HITE MH Lab 2: Cost Volume-Profit Saved Contribution Income Statement 12 0 S 00:11:40 0 Book b-2. Compute the degree of operating levetage (Do not round intermediate calculations.) Degree of operating leverago c. This part of the question is not part of your Connect assignment. [Mc 13