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i need answer from 2nd ques. and as soon as possible Tyrene Products manufactures recreational equipment. The operating results for the most recent year for
i need answer from 2nd ques. and as soon as possible
Tyrene Products manufactures recreational equipment. The operating results for the most recent year for one of its products, a skateboard, are presented below. Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 2.625 000 1575,000 1,050 ece 840000 $ 210000 Management is anxious to maintain and perhaps even improve its present level of income from the skateboards. Required: 1-a. The company's break-even point for the most recent year was 56,000 units. Compute the CM perskateboard. (Do not round intermediate calculations.) Contribution margin per skateboard $ 15 1-6. Compute the selling price and variable expenses per skateboard. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Required: 1-a. The company's break-even point for the most recent year was 56,000 units Compute the CM per skateboard. (Do not round intermediate calculations.) Contribution margin per skateboard $ 15 1-b. Compute the selling price and variable expenses per skateboard. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Amount S Selling price Variable expense 37.50 per skateboard 22.50 per skateboard $ 1-c. Compute the number of skateboards sold in the most recent year (Do not round intermediate calculations.) Number of skateboards 70.000 1-d. Compute the degree of operating leverage at the level of sales that you computed in Requirement (10). Degree of operating leverage 5 2. Due to an increase in labour rates the company estimates that variable expenses will increase by $3.00 per skateboard next year. If this change takes place and the selling price per skateboard remains constant, what will be the new CM ratio and the new break-even point in skateboards? (Do not round intermediate calculations.) PO Contribution margin Unit sales to break-even point Skateboards 3. Refer to the data in Requirement (2) above. If the expected change in variable costs takes place, how many skateboards will have to be sold next year to earn the same net operating income, $210.000, as in the most recent year? (Do not round intermediare calculational html 3. Refer to the data in Requirement (2) above. If the expected change in variable costs takes place, how many skateboards will have to be sold next year to earn the same net operating income, $210,000, as in the most recent year? (Do not round intermediate calculations.) Number of skateboards 4. Refer again to the data in Requirement (2) above. The president has decided that the company may have to raise the selling price of its skateboards. If Tyrene Products wants to maintain the same CM ratio as last year. What selling price per skateboard must it charge next year to cover the increased labour costs? (Do not round intermediare calculations. Round your answer to 2 decimal places.) Selling price 5. Refer to the original data The company is considering the construction of a new automated piant. The new plant would result in the 5. Refer to the original data. The company is considering the construction of a new, automated plant. The new plant would result in the contribution margin per unit increasing by 60%. but it would cause fixed costs to increase by 90%. If the new plant is built, what would be the company's new CM ratio and new break-even point in skateboards? (Do not round intermediate calculations.) % Contribution margin Unit sales to break-even point skateboards 6. Refer to the data in Requirement (5) above. a. If the new plant is built, how many skateboards will have to be sold next year to earn the same net operating income, $210,000, as last year? (Do not round intermediate calculations.) Number of skateboards b-2. Compute the degree of operating leverage. (Do not round intermediate calculations.) Degree of operating leverage c. This part of the question is not part of your Connect assignment Prey 12 of 14 POR B. NextStep by Step Solution
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