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I need a step-by-step solution for question 5, and 6. Thank you. The FIRST image has the INFORMATION. The SECOND image has the QUESTIONS. PROBLEMS
I need a step-by-step solution for question 5, and 6. Thank you.
The FIRST image has the INFORMATION.
The SECOND image has the QUESTIONS.
PROBLEMS PROBLEM 6-18 Basic CVP Analysis (LOI, LO3, LO4, LOS, LO6, LO8) Marjolein & Co. makes a designer alarm clock that sells for $20 per unit. Variable costs are S6 per unit, and fixed costs total $210,000 per year. CHECK FIGURE (2) Break-even: $300,000 r unit. Variable costs are S6 per unit, and Required: Answer the following independent questions: I. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in sales dollars. 3. Due to an increase in demand, the company estimates that sales will increase by $200,000 during the next year. By how much should net operating income (or net operating loss) change, assuming that fixed costs do not change? 4. Assume that the operating results for last year were: Sales Contribution margin ..224,000 Less fixed expenses 210,000Step by Step Solution
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