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no need for explanations please just the answers, thank you so much!! PLEASE ONLY ANSWER TBE LAST THREE QUESTIONS Feather Fiends, Incorporated, distributes a high-quality
no need for explanations please just the answers, thank you so much!! PLEASE ONLY ANSWER TBE LAST THREE QUESTIONS
Feather Fiends, Incorporated, distributes a high-quality wooden birdhouse that sels for $80 per unit Veriable expenses are 54000 per unit, and fixed expenses total $180,000 per yeat. Its operating results for last year were as follows Requlred: Answer each question independently based on the original data: 1. What is the products CM ratio? 2. Use the CM ratio to determine the break-even point in doltar sales. 3. Assume this year's unit sales and total sples increase by 57,000 units and $4,560,000, respectively. If the fixed expenses do not change, how much wit net operating income increase? 4-a, What is the degree of operoting leverage based on last year's sales? 4.b. Assume the president expects this year's unit sales to herease by tox-Using the degree of operating leverage from last yeat, what percentage increase in net operating income wil the company realize this yea? 5. The sales manager is convinced that a 12% reduction in the selling price, combined with a $73,000 increase in advertsing, would increase this years unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income it his ideas ane implemented? b. If the sales manager's idebs are implemented, how much will net operating income increase or decrease over last year? 6. The president does not want to change the seling price. Insteod, he wants to increase the sales commission by $2.00 per unt He thinks that this move, combined with some increase in advertising. would increble this year's unt soles by 25%. How much could the prosident increase this year's advertising expense and still earn the same $820,000 net operating income as last year? e0. Assime the presiosot expects th s years unit sues to increase oy ask. usng the oegree of operating woverage trort What percertage increase in net operating incorte will the company reasie this your? 5. The saies manger is convinced thst a 12% reduction in the selling poice, cembined with 5573,000 increase in advertis increase this yearly ung saies by 25% a. If the soles mbnager is right, whot would be this your's net operating income if his ideas are implemented? a. If the stios manapers idets bee implemented, how much will net operating incorie increase or decrease over last ye 6. The president does not want to chinge the se ing price. Instesd, he wants to increase the sales commission by 5200 presisont increase this yewrl botvertising expense and stal eorn the same 5820000 net aperating income as last year? (8) Answar is cemplete but not eatirely cerrect. Complete this question by entering your answers in the tabs below. The dales manser is cepvinced that a 12ty reductipe in the seling price, combined with a 573,000 increase in edvertising. nould ingreble this rear's unit sales by 75 . If the sales masager is right, what would be this year's net coerating inceme if his icess are implemented? (Db not round intermeshe ealculatesnt.) 4. Assume the presoent expects this years unit saies to incroose oy 10k. using the oegree or operating ieverage trom rast ye what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 12% reduction in the selling price, combined with a $73,000 increase in advertising increase this year's unit sales by 25% a. If the sales manager is fight, what would be this year's net operating income if his ideas are implemented? b. if the salos manager's ideas are implemented, how much will net operating income increase or decrease over last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.00 per un thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25%. How much coul president increase this year's advertising expense and still earn the same $820,000 net operating income as last year? * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. The sales manager is convinced that a 12% reduction in the selling price, combined with a $73,000 increase in advertising, would increase this year's unit sales by 25%. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? (Negative amounts should be input with a minus sign.) 40. Assume the presicent expects this years unt soes to increase by iow. using ine oegree or operating ieverage trom last yea What percentege increase in net operating income will the company realize this year? 5. The salos manager is convinced that a 12% reduction in the selling price, combined with a $73,000 increase in advertising wo increase this year's unit sales by 25%. a. If the sales mansger is fight what would be this year's net operating income if his ideas are implemented? b. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? 6. The prosident does not want to change the selling price. Instead, he wants to increase the saies commission by 52.00 per unit 6. The prosident does not want to change the seiting price, move, combined with some increase in advertising. would increase this year's unit sales by 25%. How much could president increase ths year's advertising expense and stall earn the same $820,000 nel operating income as last year? (x) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. The president does not want to change the selling price. Instead, he wants to increase the cales commission by $2.00 per unt. He thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25%. How much could the president increase this year's advertising expense and stili earn the same 5820,000 net operating income as last year? (Do not round intermediate calculations.) Step by Step Solution
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