Need parts 7 & 5A
er 5. Assignment Feather Fitends, Inc, distributes a high -quality wooden birdhouse that sells for $20 per untt. Vanable expenses are $8 per unit, and txed expenses total $180,000 per year. Its operating results for last year were as follows $400.000 160, Variable expesses Contribution nargin rixed expenses 240,000 Net opnrating incone $ 60,000 Required Answer each question independently based on the onginal dala: t What is the product's CM ratio? 2 Use the CM ratio to determine the break-even point in dollar sales. 3. If thes year's saies increase by $75,000 and xed expenses do not change, how much wit net operating income Increase? 4-a What is the degree of operating leverage based on last years sales? percentage increase in net operating income wil the c 5. The sales manager is convinced that a 10% reduction in the seling price, combined with a $30,000 increase b Do you recommend implementing the sales manager's suggestions? president expects thes year's sales to Increase by 20% Using the degree of operating leverage from last year, what ompany realize thes year? increase this years unit saiesty 25% a. if the salies manager is right, what would be thes years net operating income if his ideas are
DOLL F12 PrtScr I nsers Dele 6 8 9 E R O P F GHK er 5. Assignment Feather Fitends, Inc, distributes a high -quality wooden birdhouse that sells for $20 per untt. Vanable expenses are $8 per unit, and txed expenses total $180,000 per year. Its operating results for last year were as follows $400.000 160, Variable expesses Contribution nargin rixed expenses 240,000 Net opnrating incone $ 60,000 Required Answer each question independently based on the onginal dala: t What is the product's CM ratio? 2 Use the CM ratio to determine the break-even point in dollar sales. 3. If thes year's saies increase by $75,000 and xed expenses do not change, how much wit net operating income Increase? 4-a What is the degree of operating leverage based on last years sales? percentage increase in net operating income wil the c 5. The sales manager is convinced that a 10% reduction in the seling price, combined with a $30,000 increase b Do you recommend implementing the sales manager's suggestions? president expects thes year's sales to Increase by 20% Using the degree of operating leverage from last year, what ompany realize thes year? increase this years unit saiesty 25% a. if the salies manager is right, what would be thes years net operating income if his ideas are DOLL F12 PrtScr I nsers Dele 6 8 9 E R O P F GHK
