Hi,

I need the answer to file titled 2.

It has questions 5a and 6 for which I need the answers to

7/11/2019 Chapter 8 Management Accounting: HRPD 703 Summer 2019 Chapter 8 instructions I help 1. 10.00 points Strafford Company distributes a lightweight lawn chair that sells for $30 per unit. Variable expenses are $12 per unit, and fixed expenses total $313 200 annualy. Required: Answer the following independent questions: 1. What is the product's CM ratio? Contribution margin ratio 60 %% 2. Use the CM ratio to determine the break even point in sales dollars. Break-even point in sales dollars $ 522.000 1. The company estimates that sales will increase by $50,000 during the coming year due to increased demand. By how much should net operating income increase? Increase in operating income | $ 30,000 4. Assume that the operating results for last year were as folows: Sales $8701000 Less: Variable expenses 3481000 Contribution margin 522 000 Less: Fixed expenses 313 200 Net operating income $208 800 a. Compute the degree of operating leverage at the current level of sales. (Round your answer to 1 decimal place.) Degree of operating leverage 25 b. The president expects sales to increase by 30%% next year. By how much should net operating income increase? http::/eatomheducation.com/hm.Ipx7/11/2019 Chapter 8 Increase in operating income 156.600 5-4. Refer to the original data. Assume that the company sold 31,000 units last year. The sales manager is convinced that a 15%% reduction in the seling price, combined with a $90,000 increase in advertising expenditures, would increase annual unit sales by 40%%. Prepare two contribution formal income statements: one showing the results of last year's operations, and one showing what the results of operations would be if these changes were made. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.) Last Year Proposed Total Per Unit Total Per Unit Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income 5-b. Would you recommend that the company do as the sales manager suggests? O Yes No 6. Refer to the original data. Assume again that the company sold 31,000 units last year. The president feels that it would be unwise to change the selling price. Instead, he wants to increase the sales commission by $3 per unit. He thinks that this move, combined with some increase in advertising, would double annual unit sales. By how much could advertising be increased with profits remaining unchanged? Increase in advertisement cost References eBook & Resources Worksheet Learning Objective: 08-01 Understand the cost- Learning Objective: 08-02 Apply the CVP analysis framework and explain the analysis. volume-profit analysis framework Check my work 2019 McGrew-Hill Education. Al rights reserved. http::/ezto.mheducation.com/hm.Ipx