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Need #6 and #7 based on this chart. Thanks. This is all the info provided. I am not sure how to make it more clear.
Need #6 and #7 based on this chart. Thanks. This is all the info provided. I am not sure how to make it more clear.
Launch-it $ Exhibit 1: Assumptions Product #1: Launch-it Sales price per unit $ 10.00 Variable costs per unit: $ 4.00 Monthly volume 200 6.00 60% Jake's Pet Supplies Pro Forma Contribution Margin Income Statement For the month ending June 30 Product #1 Unit CM CM % Breakeven point: -in units -in sales revenue 250 2,500.00 $ $ $ $ Product #2: Sales price per unit Variable costs per unit: Monthly volume Treat-time $ 30.00 $ 18.00 100 Sales Revenue Less: Variable Costs Contribution Margin Less: Fixed Costs Operating Income Product #1 Product #2 2,000.00 $ 3,000.00 $ 800.00 $ 1,800.00 $ 1,200.00 1,200.00 $ $ $ Total 5,000.00 2,600.00 2,400.00 1,500.00 900.00 Target profit volume: -in units -in sales revenue 1,583 15,833.33 $ Total fixed costs per month $ 1,500.00 Treat-time $ Target profit per month $ 8,000.00 12.00 40% Multiproduct Breakeven point: -in units Sales revenue at breakeven Product #1 125 $ 1,250.00 Product #2 63 $ 1,890.00 Total 188 3,140.00 $ Product #2 Unit CM CM % Breakeven point: in units -in sales revenue Expected change in volume (%) 5% 125 3,750.00 $ Multiproduct Target profit point: -in units Sales revenue at target profit Product #1 792 7,920.00 Product #2 396 $ 11,880.00 Total 1,188 19,800.00 $ Target profit volume: in units -in sales revenue Margin of Safety (in $) $ 1,860.00 792 23,750.00 $ Margin of Safety % 37% Calculation of WACM WACM % WACM/unit $ 48% 8.00 Operating Leverage Factor 2.67 Expected % change in operating income (%) 13% 6. Sensitivity Analysis 1: What if the supplier increases the variable cost per unit by 20%? What is the new operating income? What is the new WACM%? What is the new MOS%? Briefly explain your findings to the client. 7. Sensitivity Analysis 2: What if the monthly sales volume changed to be 175 "Treat- times" and 125 "Launch-its"? What is the new operating income? What is the new WACM/unit? Given this sales mix, how many units (in total) will Jake need to sell to earn his target profit? Briefly explain your findings to the clientStep by Step Solution
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