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Only need help with 4, 5, 6a, b1, & b2 Thabks!! Tyrene Products manufactures recreational equipment. One of the company's products, a skateboard, sells for

Only need help with 4, 5, 6a, b1, & b2 Thabks!! image text in transcribed
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Tyrene Products manufactures recreational equipment. One of the company's products, a skateboard, sells for $35. The skateboards are manufactured in an antiquated plant that relies heavily on direct labor workers Thus, variable costs are high, totaling S24 50 per skateboard of which 70% is direct labor cost. Over the past year the company sold 48,000 skateboards, with the following operating results Sales (48,000 skateboards) Variable expenses $1,680,000 1,176,000 Contribution margin Fixed expenses 504,000 420,000 Net operating income 84,000 Management is anxious to maintain and perhaps even improve its present level of income from the skateboards Required: 1a. Compute the CM ratio and the break-even point in skateboards. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Contribution margin Unit sales to break even 30 % 40000 skateboards 1b. Compute the degree of operating leverage at last year's level of sales. (Round your answer to 2 decimal places.) Degree of operating leverage 2. Due to an increase in labor rates, the company estimates that variable costs will increase by $175 per skateboard next year If this change takes place and the selling price per skateboard remains constant at $35.00, what will be the new CM ratio and the new break-even point in skateboards? (Round your intermediate calculations and the "Contribution margin" answer to 2 decimal places and other answer to the nearest whole number. ) Contribution margin Unit sales to break even 25 % 8000 skateboards

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