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please help/ The ABC Industrial Company manufactures and sells a specialized cordless telephone for high electromagnetic radiation environments. The company's contribution format income statement for
please help/
The ABC Industrial Company manufactures and sells a specialized cordless telephone for high electromagnetic radiation environments. The company's contribution format income statement for the most recent year is given below: Sales (200,000 units) Variable expenses. Contribution margin Fixed expenses Total $1,600,000 800,000 800,000 400,000 Required: a. The selling price (5 marks] b. Variable cost per unit [5 marks] C. Support with evidence that company's CM ratio equals variable expense ratio [10 marks] d. Net operating income [10 marks] e. Refer to the original data; The ABC received three options from sales manager to improve its profit. The ABC Manufacturing company is to offer a reduction in the selling price per unit by 25%, combined with a $100,000 increase in advertising budget, would increase this year's unit sales by 25% and reduction in variable cost per unit by 25%. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? (70 marks)Step by Step Solution
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