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- If sales increase by 1 0 % , what percentage growth in profit can the company expect? - what is the predicted operating profit

- If sales increase by 10%, what percentage growth in profit can the company expect?
- what is the predicted operating profit in year 3?
Total Sales Revenue ($5 per serving)Less: Variable costs:Customer Meals:Direct Materials ($1 per customer serving)Direct Labor ($0.75 per customer meal)Variable Manufacturingg Overhead (60% of Direct labor)Variable Manufacturing Cost ($1.25 per donated meal)Customer Delivery Expenses ($2 per customer order)Total Contribution MarginLess: Fixed Costs Allocated Based on Sales RevenueFixed Manufacturing ExpensesFixed Selling ExpensesFixed Administrative ExpensesTotal Fixed ExpensesNet Operating ProfitAverage Contribution Margin Per Meal SoldAverage Contribution Margin Ratio (% of Revenue)SingleServing15,000s3,0002,2501.3503,7501,50075012.6002,4003,6891.4261,9677,082Dual Serving(4,682)SSingleServing0.80 $50,000 $10,0003,7502,2506,2502,5001,25026.00024,00012.2954,7546,557Family Size240,000$ 305,00023.60739348,0009,0005,40015,0006.0003,00059,01622,82031.475113,31140,289Dual Serving Family Size4.80 $ 12.80Total86,400 S 125,00061,000153,600 $ 180,000$15,0009,00025,00010,0005,00075,00029,00040.000144,00036,000Overall9.0059.02%Input Values:Number of Customer MealsSales mix (% of customer meals)Number of Servings per MealNumber of ServingsNumber of Customer OrdersNumber of Donated MealsNumber of Donated DeliveriesPrice Per ServingVariable Costs:Direct Materials ($1 per serving)Direct Labor ($0.75 per customer meal)Variable Manufacturing Overhead 60% of DLVariable cost of donated mealsVariable delivery expenses (customer meals)Variable delivery expenses (donated meals)Fixed costs:Fixed manufacturing costsFixed selling expensesFixed administrative expensesTotal Fixed costsSingle Serving3.000159%13,0007503,000675,00029,000Dual FamilyServing Size5,00012,00040,00010,000144,0001,2505,0001060%5.00 per customer serving48.0001.00 per customer serving0.75 per customer meal60% of direct labor cost1.25 per donated meal2.00 per customer order125.00 per delivery3,00012,00024Total20,000100%61,0005,00020,00040Donation Delivery Expense (S125 per delivery )Total Variable Costs25%
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