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I NEED 5,6,7, and 8 as the cm per unit is 8 and the cm ratio I calculated equal to 40% The data below pertain
I NEED 5,6,7, and 8
as the cm per unit is 8 and the cm ratio I calculated equal to 40%
The data below pertain to the forecasts of Predict Company for the upcoming year. Description Amount $1,200,000 Sales (60,000 units) Direct materials (Variable) 250,000 Direct Labor (Variable) 150,000 Manufacturing overhead: Variable 80,000 Fixed 120,000 Selling and administrative: Variable 240,000 Fixed 200,000 Net operating income $ 160,000 Required: Note: show workings for full credit 1. Calculate the CM per unit. (1 mark) 2. Calculate the CM ratio. (1 mark) 3. Calculate the Break-even in units and in dollars (use the formula or equation method) (2 marks) 4. What is the units to achieve a target profit of $480,000? (1 mark) 5. At the current sales level, compute the margin of safety in units and in dollars. (2 marks) 6. At the current sales level, compute the operating leverage (1 mark). 7. If sales increase by 15%, what will be the corresponding percentage increase in operating profits? (1 mark) 8. If the sales decrease by $100,000, what will be the corresponding change in operating profits? (1 mark)
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