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If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? If
- If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
- If the variable cost per unit increases by $1, spending on advertising increases by $1,150, and unit sales increase by 130 units, what would be the net operating income?
- What is the break-even point in unit sales?
- What is the break-even point in dollar sales?
- How many units must be sold to achieve a target profit of $4,500?
- What is the margin of safety in dollars? What is the margin of safety percentage?
- What is the degree of operating leverage? (Round your answer to 2 decimal places.)
- Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.)
- Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $4,200 and the total fixed expenses are $17,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.)
- Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $4,200 and the total fixed expenses are $17,500. Given this scenario and assuming that total sales remain the same. Using the degree of calculated operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.)
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