| 3. | What is the variable expense ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34). Variable expense ratio? % | 4. | If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.) Increase in net operating income? | | 5. | If sales decline to 900 units, what would be the net operating income? (Do not round intermediate calculations.) Net operating income? | | 6. | If the selling price increases by $2.10 per unit and the sales volume decreases by 100 units, what would be the net operating income? (Do not round intermediate calculations.) Net operating income? | | 7. | If the variable cost per unit increases by $1.10, spending on advertising increases by $1,600, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.) Net operating income? | 8. | What is the break-even point in unit sales? (Do not round intermediate calculations.) Break even point? units | | 9. | What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your final answer to the nearest dollar amount.) Break even point? | | 10. | How many units must be sold to achieve a target profit of $6,426? (Do not round intermediate calculations.) Number of units? | | 11-a. | What is the margin of safety in dollars? (Do not round intermediate calculations.) | Margin of safety? | 11-b. | What is the margin of safety percentage? (Round your final answers to the nearest whole percentage (i.e, .12 should be entered as 12).) Margin of safety? % | | 12. | What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage? | | 13. | Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 3% increase in sales? Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34). Increase in net operating income? % | | 14. | Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $7,548 and the total fixed expenses are $13,100. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) | Degree of operating leverage? | 15. | Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $7,548 and the total fixed expenses are $13,100. Given this scenario, and assuming that total sales remain the same, calculate the degree of operating leverage. Using the calculated degree of operating leverage, what is the estimated percent increase in net operating income of a 3% increase in sales? Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34). Increase in net operating income? % | | |
