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only 5a, 5b, and 6 please! thank you Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are

only 5a, 5b, and 6 please! thank you
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Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Assume this year's unit sales and total sales increase by 53,000 units and $6,360,000, respectively. If the fixed expenses do not change, how much will net operating income increase? $ 3,240,000 1,620,000 1,620,000 200,000 $ 1,420,000 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's unit sales to increase by 19%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 14% reduction in the selling price, combined with a $65,000 increase in advertising, would increase this year's unit sales by 25%. a. If the sales manager is right, 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 president does not want to change the selling price. Instead, he wants to increase the sales commission by $1.70 per unit. Het 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 still earn the same $1,420,000 net operating income as last year? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req SA Req 5B Req 6 Ar 2 points eBook GI P References 4-8. ASSUMNS 18 dent expects this year's unit sales to increase by 19% Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 14% reduction in the selling price, combined with a $65,000 increase in advertising, would increase this year's unit sales by 25% a. If the sales manager is right, 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 president does not want to change the selling price. Instead, he wants to increase the sales commission by $1.70 per unit. 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 still earn the same $1,420,000 net operating income as last year? Complete this question by entering your answers in the tabs below. Reg 1 Req 3 Reg 48 Reg 58 The sales manager is convinced that a 14% reduction in the selling price, combined with a $65,000 increase in advertising. would increase this year's unit sales by 25%. If the sales manager is right, what would be this year's net operating income f his ideas are implemented? (Do not round intermediate calculations.) Net operating income (jook) $ Req 2 Req 4A 707.000 Reg SA points eBook Prin References 5. The sales manager is convinced that a 14% reduction in the selling price, combined with a $65,000 increase in advertising, would increase this year's unit sales by 25% a. If the sales manager is right, 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 president does not want to change the selling price. Instead, he wants to increase the sales commission by $170 per unit. 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 still earn the same $1.420,000 net operating income as last year? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3 Reg 4A Reg 48 eBook References increase this year's unit sales by 25% a. If the sales manager is right, 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 president does not want to change the selling price. Instead, he wants to increase the sales commission by $170 per unit. 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 still earn the same $1,420,000 net operating income as last year? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Reg 3 Req 4A Req 48 Req SA Req6 The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1.70 per unit. 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 still earn the same $1,420,000 net operating income as last year? (Do not round intermediate calculations.) The amount by which advertising can be increased is Show less

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