Hello, can someone please help me. I'm new to accounting and i'm having lots of trouble with these questions and i''m not sure how to solve them. i would really really appreciate your help.
2 . Value : 10.00 points Problem 8 - 5 Various CVP Questions : Break - Even Point ; Cost Structure ; Target Sales ( LO1 - CC2 , 3; 102 - CC 5 , 6 , 7) Tyrene Products manufactures recreational equipment . One of the company's products , a skateboard , sells for $37 . The skateboards are manufactured in an antiquated plant that relies heavily on direct labour workers . Thus , variable costs are high , totalling $25. 90 per skateboard , of which 70% is direct labour cost . Over the past year the company sold 43, 000 skateboards , with the following operating results :" Sales ( 43, 000 skateboards) $ 1 , 591 , 000 Variable expenses 1 , 1 13, 700 Contribution margin 47 7, 300 Fixed Expenses 27 7. 500 Net operating income $ 195, 8.00 Management is anxious to maintain and perhaps even improve its present level of income from the skateboards . Required :` la . Compute the GM ratio and the break-even point in skateboards . " Do not round intermediate calculations . Round your answer to the nearest whole number . !" @ Answer is complete and correct . Contribution margin 30 0 | %/0 Unit sales to break - even point 25, 000 0| skateboards16. Compute the degree of operating leverage at last year's level of sales . ( Round your answer to 2 decimal places . ` Answer is complete and correct . Degree of operating leverage 2.39 0 2 . Due to an increase in labor rates , the company estimates that variable costs will increase by $ 1.65 per skateboard next year . If this change takes place and the selling price per skateboard remains constant at 537 . 00 , what will be the new CM ratio and the new break-even point in skateboards ? ( Round your* intermediate calculations and the " Contribution margin " answer to 2 decimal places and other answer to the nearest whole number ." @ Answer is complete and correct . Contribution margin 25 @| %10 Unit sales to break - even point 30, 000 1\\ skateboards* 3 . Refer to the data in 12) above . If the expected change in variable costs takes place , how many skateboards will have to be sold next year to earn the same net operating income , $149 , 800 , as last year ? I Do not round intermediate calculations . Round your answer to the nearest whole number . ) @ Answer is complete and correct . Number of skateboards 51 , 600 04 . Refer again to the data in 12) 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 ratio as last year what selling price per skateboard must it charge next year to cover the increased labor costs ? ( Do not round intermediate calculations . Round your answer to 2 decimal places ." @ Answer is complete but not entirely correct . $ Selling price 39.6513 5 . Refer to the original data . The company is considering the construction of a new , automated plant . The new plant would slash variable costs by 20%'6 , but it would cause fixed costs to increase by 92% . If the new plant is built , what would be the company's new GM ratio and new break-even point in skateboards ? ( Round your intermediate calculations and the " Contribution margin " answer to 2 decimal places and other answer to the nearest whole number . @ Answer is complete but not entirely correct . Contribution margin 440 | %10 Unit sales to break - even point 23, 564 3\\ skateboards 6. Refer to the data in 15 ) above* a . If the new plant is built , how many skateboards will have to be sold next year to earn the same net operating income , $199, 800 , as last year ? I Do not round intermediate calculations . Round your answer to the nearest whole number . ! @ Answer is complete but not entirely correct . Number of Skateboard s 35, 836 13b-1.Assume that the newI plant is constructed and that next year the company manufactures and sells 43,!'J skateboards [the same number as sold last year}. Prepare a contribution format income statement. [Input all amounts as positive values except losses which should be indicated by minus sign. } Sales $ 1,591. Variable expenses BQGHED o 9 Answer h complete but not entirely correct. Contribution margin memo Fixed expenses 383,616 a Net operating income [loss] 3 316.424 I; Compute the degree of operating leverage. [Round your answer to 2 decimal places.) 9 Answer In: complete but not entirely correct