Please find attached exercises of questions 1,2 and 3 . Please provide explanation and steps when applicable. All questions are attached as pictures in this discussion box. Correct answers with explanations will be given helpful rating promptly.
The CVP income statements shown below are available for Oriole Company and Pharoah Company. Sales revenue $830,000 $830,000 Variable costs 415,000 12 1,000 Contribution margin 415,000 709,000 Fixed costs 3 15,000 609,000 Operating income $ 100,000 $ 100,000 (a 1) Calculate the degree of operating leverage for each company. (Round answer to 2 decimal places, e3. 15.25.) Oriole Co. Pharoah Co. (b) Assuming that sales revenue increases by 13%, prepare a variable costing income statement for each company. Oriole and Pharoah Companies CVP Income Statements The Sandhill Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,830 per month. The other barbers are paid $1,350 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $830 plus 60 cents per haircut; depreciation on equipment $520; barber supplies 40 cents per haircut; utilities $320; and advertising $250. The price of a haircut is $13. (a) Determine the variable cost per haircut and the total monthly xed costs. (Round variable cost to 2 decimal places, e.g. 15.25.) Variable cost $ per haircut Total monthly xed costs $ \fOriole Manufacturing's sales slumped badly in 2022. For the rst time in its history, it operated at a loss. The company's income statement showed the following results from selling 52,800 units of product: net sales $1,584,000; total costs and expenses $1,768,800; and net loss $184,800. Costs and expenses consisted of the amounts shown below: Cost of goods sold $1,188,000 $818,400 $369,600 Selling expenses 422,400 110,000 312,400 Administrative expenses 158,400 101,200 57,200 $1,768,800 $1,029,600 $739,200 Management is considering the following independent alternatives for 2023: 1. Increase the unit selling price by 30% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from xed annual salaries totalling $176,000 to total salaries of $17,600 plus a 5% commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and xed cost of goods sold to 50:50. (a) Calculate the break-even point in dollars for 2022. Break-even point $ ' (b) Calculate the break-even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to O decimal places, e.g. 15% and final answers to O decimal places, e.g. 5,275.) tA Break-even point if unit selling price increases by 30% Break-even point if there is a change in compensation $ Break-even point if there is a purchase of new high-tech factory machinery
