PLEASE HELP ME GUYS BY THURSDAY 17, 2015. GOD BLESS

7. The following income statement was drawn from the records of Butler Company, a merchandising firm:

BUTLER COMPANY Income Statement For the Year Ended December 31, 2014
Sales revenue (7,000 units $162)	$	1,134,000
Cost of goods sold (7,000 units $89)		(623,000	)
Gross margin		511,000
Sales commissions (10% of sales)		(113,400	)
Administrative salaries expense		(89,000	)
Advertising expense		(38,000	)
Depreciation expense		(41,000	)
Shipping and handling expenses (7,000 units $2)		(14,000	)
Net income	$	215,600

Required:
a.	Reconstruct the income statement using the contribution margin format.

b.

Calculate the magnitude of operating leverage. (Round your answer to one decimal place.)

8.

Venture Camps, Inc., leases the land on which it builds camp sites. Venture is considering opening a new site on land that requires $3,750 of rental payment per month. The variable cost of providing service is expected to be $6 per camper. The following chart shows the number of campers Venture expects for the first year of operation of the new site:

Jan.	Feb.	Mar.	Apr.	May	June	July	Aug.	Sept.	Oct.	Nov.	Dec.	Total
230	300	290	250	450	550	700	700	400	430	350	350	5,000

Required:

Assuming that Venture wants to earn $7 per camper, determine the price it should charge for a camp site in February and August.

9.

Nikolas Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to decline in the fall and winter months. During 2014, the high point in activity occurred in June when it produced 204 boats at a total cost of $157,880. The low point in production occurred in January when it produced 40 boats at a total cost of $48,000.

Required:

a.	Use the high-low method to estimate the amount of fixed cost incurred each month by Nikolas Boat Company.

b.

Determine the total estimated cost if 170 boats are made.

10.The following income statement applies to Nagano Company for the current year:

Income Statement
Sales revenue (250 units $60)	$	15,000
Variable cost (250 units $36)		(9,000	)
Contribution margin		6,000
Fixed cost		(2,000	)
Net income	$	4,000

Required:
a.	Use the contribution margin approach to calculate the magnitude of operating leverage. (Round your answer to 1 decimal place.)

b.	Use the operating leverage measure computed in Requirement a to determine the amount of net income that Nagano Company will earn if it experiences a 10 percent increase in revenue. The sales price per unit is not affected. (Do not round intermediate calculations.)

c-1.	Verify your answer to Requirement b by constructing an income statement based on a 10 percent increase in sales revenue. The sales price is not affected.

c-2.	Calculate the percentage change in net income for the two income statements.