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need help solving the following questions with the info provided below thanks! number 8 and 9 please this is the information from number 6 number
need help solving the following questions with the info provided below thanks!
number 8 and 9 please
this is the information from number 6
number to solve 8 and 9
how? the info provided is used to solve the problem
Base Year calculations: In order for Haas Company to consider any alternatives, they must first understand their current or "base" position. Break-even, Margin of Safety and Degree of Operating Leverage are 3 criteria that can indicate the company's current situation. Use Haas's anticipated Year 4 information for these "base year" calculations 8) Margin of Safety evaluates the company's position compared to "break-even". Use the information from 6) above and your CONNECT problem to summarize the information in the table below Calculate the Margin of Safety in (a) dollars (b) units and (c) percent for Year 4. Remember, Haas Company produces and sells the same number of units in Year 4 that they SOLD in year 3. Break-even Base Year 4 Units Sales Revenue B101000 NOI .30000 BBL a) MoS dollars 260.000 200 3,380000 - 3, Dacro b) MoS units O/000500 c) MoS % Note: Check figures must be supported to earn credit for grading purposes. 3, 3801o0o 9) Calculate the Degree of Operating Leverage for Year 4, assuming nothing else changes 260.000 - 13 200000 52-2.60 Looking at changes: Look at cach situation below independently as a change to the "base" position 10) Changing sales price: The new marketing director believes that Hans Company can sell more units of its product if they lower their sales price by 5% per unit a) Calculate the new ) sales price and (ii) contribution margin per unit i) new sales price $44,90 ii) CM per unit iii) What will the new Profit formula be? 5.4Q -2400000 = 49,4 b) How many units will they need to sell to make the same operating income (NOI) as originally projected for year 4 (base assumption)? Note: Check figures must be supported to earn credit for grading purposes. 20000 / 5.4 -3, 704 r: Units produced/sold Sales Revenue @ $52 per unit Variable Expenses $ 45 per unit Fixed Expenses Total Expenses Profit/NOI o 420000 420000 -420000 20000 1040000 900000 420000 1320000 -280000 40000 2080000 1800000 420000 2220000 140000 60000 3120000 2700000 420000 3120000 80000 4160000 3600000 420000 4020000 140000 0 Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per uniti Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year : Fixed manufacturing overhead Fixed selling and administrative expenses 23 15 6 1 $ $ 240,000 $ 180,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company's product is $52 per unit. Required: 1. Compute the company's break-even point in unit sales. 2. Assume the company uses variable costing: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. 3. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below. BBB VICON even pullit III UIT saic 2. Assume the company uses variable costing: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1 Year 2, and Year 3. 3. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Req 3A Req 3B Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses intermediate calculations and final answers to 2 decimal places.) Year 1 Year 2 Year 3 Unit product cost $ 48.00 $ 47.20 $ 50.00 ( Req 2B Req3B > Step by Step Solution
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