mile Home Phon Ow Petu D Beste Xan I coor View Pas Thereformeer y Songs These we get C17 - D 1 1 Question 2: CVP Analysis (9 mars 2 3 Part A: Red Ruby sells a single product. The company's most recent income statement is given below 5 + 6 Sales in its TO DOO 7 Sales 150.000 8 Les variable expenses 6 000 9 Contribution martin 90.000 10 Less: fixed expenses 2500 11 Operating income 55.000 12 Income tax expense (209) 13.00 13 Net Income 52.000 14 15 Required: Calculate the following mark each) 16 1. Contribution margin per unit 17 18 2. Breakeven point in units $ 60.000 3. The company wants to achieve net income of 19 How much must desired operating income be? 20 = Cover Sheet Q1 Q2 Q3 Q3 dataset 04 05 06 Calculation Mode: Automatic Workbook Statistics MacBook Air Excel 29 - Saved Home Date Hale th cery CI D E 1 DOO A 2. Breakeven point in units 18 3. The company wants to achieve net income of 19 S 20 How much must desired operating income be? 5. To achieve $60.000 in net income sales dollars must total 21 6. Ir sales increase by 22 $ operating income will increase by in dollars) 23 100.00 24 Part B. The company is considering changing up its cost structure. The change would comist of switching out sales commissions paid for an increase in monthly salaries. The change would reduce 25 Variable cost per unit by 52.00 Total fixed costs would increase by $10.000 (2 marks) 26 27 Decrease in variable cost per unit $ 2 28 Increase in monthly fixed costs $ 10.000 29 Calculate the indifference point in units 30 31 When would the company prefer each cost structure? Why? (2 marks) 5 Cover Sheet Q1 Q2 Q3 Q3 dataset 04 05 06 Calculation Mode: Automatic Workbook Statistics MacBook Air