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Please answer Problem 3-22A a,b and c please Determine the margin of safety as a percentage for each product. 2 decimal points. Prepare revised income
Please answer Problem 3-22A a,b and c please
Determine the margin of safety as a percentage for each product. 2 decimal points. Prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. For each product, determine the percentage change in net income that results from the 20 percent increase in sales. Which product has the highest operating leverage? Round your figures to 2 decimal points. Assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? Explain your answer. Assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line? Explain your answer. Analyzing sales price and fixe cost using the equation method Yilan, Company is considering adding a new product. The cost accountant has provided the following data. The administrative vice president has provided the following estimates. The manager has decided that any new product must at least break even in the first year. Required Use the equation method and consider each requirement separately. If the sales price is set at $110, how many units must Yilan sell to break even? Yilan estimates that sales will probably be 4,000 units. What sales price per unit will allow company to break even? Yilan has decided to advertise the product heavily and has set the sales price at $115. If are 3, 600 units, how much can the company spend on advertising and still break even? Rosenthal Company makes and sells products with variable costs of $24 each. Rosenthal annual fixed costs of $315,000. The current sales price is $87Step by Step Solution
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