Part 2 Questions:

2 1.33 palms eBDuk References Check my work New Tech Limited manufactures and sells wireless phone chargers. The product sells for $30 per unit and has a CM ratio of 50%. The company's xed expenses are $450,000 per year: Required.- 1. What are the variable expenses per unit? 2. What is the annual break-even point in units and in sales dollars? Break-even paint in units un'rls Break-even paint in sales dollars 3. What annual sales level in units and in sales dollars is required to earn target operating income of $150,000? Ignore taxes. Sales in units Sales in dollars 4. Assume that New Tech is able to reduce variable costs by $3 per unit but to do so will increase fixed costs by $54,000. What is the company's new annual break-even point in units? New break-even point in units units 5. Referring to the original data, what sales level in dollars is required to earn an annual target profit of $100,000 after taxes if the company's tax rate is 20%? Sales level in dollarsCheck my work 3 Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $20 per game. Fixed expense associated with the game total $182,000 per year, and variable expense are $6 per game. Production of the game is entrusted to a printing contractor. Variable expense consist mostly of payments to this contractor. Required: 1.34 1-a. Prepare a contribution format income statement for the game last year. points Magic Realm, Inc., eBook Contribution Income Statement References Total Per Unit o $ 0 $ 0 1-b. Compute the degree of operating leverage. (Round your answer to 1 decimal place.) Degree of operating leverageeBo-ok References 2. Management is condent that the company can sell 13,000 games next year (an increase of 3,000 games, or 20%, over last year). 3. Compute the expected percentage increase in operating income for next year. (Do not round Intermediate calculations.) _:IE b. Compute the expected total dollar operating income for next year. [Do not prepare an income statement; use the degree of operating leverage to compute your answer.) {Do not round intermediate calculations.)