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hii please help me solve my accounting practice problems 2. The margin of safety as a percentage of sales is as follows: Margin of safety

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2. The margin of safety as a percentage of sales is as follows: Margin of safety (in dollars) (a) Sales (b) Margin of safety percentage (a)(b) Problem 5-23 (60 minutes) 1. The CM ratio is: Sales price. Variable expenses Contribution margin, 2. Dollarsalestobreakeven=CMratioFixedexpenses 4a. \$The degree of operating leverage is calculated as follows: Degreeofoperatingleverage=NetoperatingincomeContributionmargin Problem 5-23 (continued) 5. This year's net operating income is computed as follows: Sales (25,000 units $18 per unit). Variable expenses (25,000 units $8 per unit). Contribution margin Fixed expenses ($180,000+$30,000)............... 210,000 Net operating income. $40,000 6. Expected total contribution margin: 20,000 units 1.25$11.00 per unit* Present total contribution margin. Incremental contribution margin, and the amount by which advertising can be increased with net operating income remaining unchanged. $20.00($8.00+$1.00)=$11.00 2. The margin of safety as a percentage of sales is as follows: Margin of safety (in dollars) (a) Sales (b) Margin of safety percentage (a)(b) Problem 5-23 (60 minutes) 1. The CM ratio is: Sales price. Variable expenses Contribution margin, 2. Dollarsalestobreakeven=CMratioFixedexpenses 4a. \$The degree of operating leverage is calculated as follows: Degreeofoperatingleverage=NetoperatingincomeContributionmargin Problem 5-23 (continued) 5. This year's net operating income is computed as follows: Sales (25,000 units $18 per unit). Variable expenses (25,000 units $8 per unit). Contribution margin Fixed expenses ($180,000+$30,000)............... 210,000 Net operating income. $40,000 6. Expected total contribution margin: 20,000 units 1.25$11.00 per unit* Present total contribution margin. Incremental contribution margin, and the amount by which advertising can be increased with net operating income remaining unchanged. $20.00($8.00+$1.00)=$11.00

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