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II need Questions 1a,b,c,d. 2a,b. 3a, b, c, d per unit Chapter 5, CVP HOMEWORK Managerial Accounting, HCT Base Case (Plan] Variable Units Fixed Sell
II need Questions 1a,b,c,d. 2a,b. 3a, b, c, d
per unit Chapter 5, CVP HOMEWORK Managerial Accounting, HCT Base Case (Plan] Variable Units Fixed Sell price [SP] $ 20.00 Direct materials $ 6.00 Direct labor $ 2.00 Manufacturing OH$ 3.00 lling exp.-commissions 5% Don't forget if sell price changes then commision changes of sell price per unit Advertising $ 40,000 Other selling $ 100,000 Admin. $ 60,000 Manufacturing $ 160,000 Total Base units 62,000 sold & manufactured To Do 1 at Base a Compute Contribution per unit: $s & % b Compute Operating Income at Base units Compute Breakeven sales $s & # units d Compute Leverage ratio at Base units 2. a If a new Target income of $120,000 is to be achieved, what # of units must be sold b Compute Leverage ratio at Target 3 Operating Income --- What-if scenarios? a Improve product performance, add $3.20 variable cost per unit, increase unit sales 20%, increase sell price per unit by 10% b Raise variable selling to 12% of sell price per unit, double advertising, sell every 5th unit at no charge, unit sales double Increase sell price by 15%, unit sales decrease 14% d Remove features from product, decrease variable cost per unit by $3, unit sales decrease by 25%Step by Step Solution
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