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koi42 Tyrene Products manufactures recreational equipment. The operating results for the most recent year for one of its products, a skateboard, are presented below. Sales

koi42 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. Contribution margin per skateboard 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 41,600 units. Compute the CM per skateboard. (Do not round intermediate calculations.) $ 1,950,000 1,170,000 780,000 624,000 156,000 Selling price Variable expense $ 1-b. Compute the selling price and variable expenses per skateboard. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Amount per skateboard per skateboard
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Tyrene Products manufactures recreational equipment. The operating resuits for the most recent year for one of its products. a skateboard, are presented below. Management is anxious to maintain and perhaps even improve its present level of income from the skateboards. Required: 1-o. The company's break-even point for the most recent year was 41,600 units. Compute the CM per skateboard. (Do not round intermediote calculotions.) 1.b. Compute the selling price and variable expenses per skateboard. (Do not round intermediate calculations, Round your answers to 2 decimal places.) 1-c. Compute the number of skateboards sold in the most recent yeat. (Do not round intermediate colculations.) 1-d. Compute the degree of operating leverage at the ievel of sales that you computed in Requirement (1c) 2. Due to an increase in labour rates, the company estimates that varlable expenses wil 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 breokevent point in skateboards? (Do not round intermediote colculotions.) 3. Refer to the data in Requirement (R) above. If the expected change in vanable costs takes place, how many skateboards will have to be sold next year to earn the sarne net operating income, $156,000, as in the most recent year? (Do not reund intermediote calculations.) 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 ratho as last year, what seling price per skateboard must it charge next year to cover the increased labour costs? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 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.) 6. Refet to the data in Requirement (5) above. 0. If the new plant is built. how many skateboards will have to be sold next year to earn the same net operating income, 5156,000 . as last year? (Do not round intermediote calculations.)

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