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HELP PLEASE Accountant, I have good news... I need help analyzing one of our current products, the Air-Accountant shoes. Here is the information about the

HELP PLEASE image text in transcribed
Accountant, I have good news... I need help analyzing one of our current products, the Air-Accountant shoes. Here is the information about the product: Selling Price $44 (accountants are cheap) DM - $14 DL - $9 Var Oh - $5 Fixed costs per year - $80,000 Currently, we are selling 6,250 pairs of Air-Accountants per year. We need to determine the following: 1. Break-even units and sales dollars 2. Margin of safety in units, sales dollars, and percentage 3. Operating Leverage 4. What happens if we switch material suppliers? We would pay an extra $1.50 per shoe in materials but the higher quality could lead to a 10% increase in sales (units). Should we do this? 5. Going back to the original data, what if we spent $5,000 on advertising this year and it increased sales (units)by 4%... should we go forward with this plan? 6. By what percentage would sales have to increase for the $5,000 of advertising to make sense? Mr. Sole, our boss, will want to see this in an excel spreadsheet and may have questions of his own. As a result, we need to build the excel sheet in such a way that in can be updated at a moment's notice. The excel sheet should be formatted in a professional manner as well. Please submit this to Mr. Kelly for him to review by the due date. Good luck C.P. Accountant

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