Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer 9, 10, 11, and 12, thank you Chapter 6 - Alternate Data Foundational 15 Data Sales 30,000 (Sales volume = 1,000 units) Variable
please answer 9, 10, 11, and 12, thank you
Chapter 6 - Alternate Data Foundational 15 Data Sales 30,000 (Sales volume = 1,000 units) Variable Expenses 15,000 Contribution Margin 15,000 Fixed Expenses 10,000 Net Op. Income 5,000 Questions 1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 3. What is the variable expense ratio? 4. If sales increase to 1,001 units, what would be the increase in Net Op. Income? 5. If sales decline to 900 units, what would be the new Net Op. Income? 6. If the selling price increases by $2 per unit and the sales decline by 100 units, what would be the Net Op. Income? 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,500, and unit sales increase by 250 units, what would be the new Net Op. Income? 8. What is the breakeven point in unit sales? 9. What is the breakeven point in dollar sales? 10. How many units must be sold to generate a target profit of $5,000? 11. What is the margin of safety in dollars? What is the margin of safety percentage? 12. What is the degree of operating leverage? 13. Using the degree of operating leverage, what is the estimated percent increase in profit of a 5% increase in sales? 14. Assume that the company's variable and fixed costs were reversed. What would be the degree of operating leverage? 15. Using the degree of operating leverage in #14, what is the estimated increase in profit of a 5% increase in sales Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started