Mauro Products sells a woven basket for $15 per unit. Its variable expense is $12 per unit and the company's monthly fixed expense is $4,200. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? 1. Break-even point in unit sales baskets 2. Break-even point in dollar sales 3. Break-even point in unit sales baskets 3. Break-even point in dollar sales Lin Corporation has a single product whose selling price is $120 per unit and whose variable expense is $80 per unit. The company's monthly fixed expense is $50,000. Required: 1. Calculate the unit sales needed to attain a target profit of $10,000. 2. Calculate the dollar sales needed to attain a target profit of $15,000. Note: For all requirements, do not round intermediate calculations. 1. Units sales to attain target profit units 2. Dollar sales to attain target profit Required information [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below: Percent of Per- Unit Sales Selling price $ 90 166% Variable expenses 63 79 Contribution margin 33 27 30% Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Reg 13 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000? Netopemanginwme -- Required information [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ es 106% Variable expenses 63 76 Contribution margin $ 27 36% Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Reg 15 Should the advertising budget be increased? :1 Required information [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below: Percent of Per- Unit Sales Selling price $ 96 166% Variable expenses 53 7a Contribution margin $ 27 36% Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month ifthe company uses higher-quality components that increase the variable expense by $2 per unit and increase unit sales by 10%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 23 Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $2 per unit and increase unit sales by 10%. Req ZB > Required information [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ 90 100% Variable expenses 63 76 Contribution margin $ 27 39% Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month ifthe company uses higher-quality components that increase the variable expense by $2 per unit and increase unit sales by 10%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Red 23 Should the higher-quality components be used? :I Magic: Realm, Incorporated, developed a new fantasy board game and sold 15,000 units last year at a selling price of $20 per game. Fixed expenses associated with the game are $182,000 per year, and variable expenses are $6 per game. Production of the game was outsourced to a printing contractor, so variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.) Complete this question by entering your answers in the tabs below. Req 1A Req lB Req 2 Prepare a contribution format income statement for the game last year. Req 1B ) Magic Realm, Incorporated, developed a new fantasy board game and sold 15,000 units last year at a selling price of $20 per game. Fixed expenses associated with the game are $182,000 per year, and variable expenses are $6 per game. Production of the game was outsourced to a printing contractor, so variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 18,000 games next year {an increase of 3,000 games, or 20%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.) Complete this question by entering your answers in the tabs below. Req 1A Req iB Req 2 Compute the degree of operating leverage. Note: Round your answer to 1 decimal place. Magic Realm, Incorporated, developed a new fantasy board game and sold 15,000 units last year at a selling price of $20 per game Fixed expenses associated with the game are $182,000 per year, and variable expenses are $6 per game. Production ofthe game was outsourced to a printing contractor, so variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year: Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.) Complete this question by entering your answers in the tabs below. Req 1A Reg 13 Req 2 Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption: Note: Do not round intermediate calculations. a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.) Show lessA a. Net operating income increases by % b. Total expected net operating income