Question
Oriole Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2022: Net sales $440,000 Direct materials
Oriole Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2022: Net sales $440,000 Direct materials 79,200 Direct labour 52,800 Manufacturing overhead-variable 17,600 Manufacturing overhead-fixed 26,400 Selling expenses-variable Selling expenses -fixed Administrative expensesvariable Administrative expenses-fixed $17,600 17,600 8,800 8,800
Assuming fixed costs and net sales are spread evenly throughout the year, determine Oriole's monthly break-even point in units and dollars. (Round answers to O decimal places, e.g. 5,275.)
monthly breakeven in units ..units
monthly breakeven in dollars $.
Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual operating income. (Round answers to O decimal places, e.g. 15 or 15%.
Contribution margin ratio.% Annual margin of safety ratio.%
annual operating income$.
Determine the percentage increase in annual operating income if Oriole Corporation increases its selling price by 16% and all other factors (including demand) remain constant. (Round answer to 2 decimal places, e.g. 15.25%.)
percent increase in profit ..%
Assume the price remains at $40 per unit and variable costs remain the same per unit, but fixed costs increase by 16% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual operating income calculated in part second part. (Round answer to 2 decimal places, e.g. 15.25%.)
percent increase in unit sales..%
Determine the sales required to earn an operating income of $316,800 after tax. Oriole Corporation's income tax rate is 40%.
sales required to earn operating income of $316800 $
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