Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please list answers out by number s. If Giannis' company reaches the targeted sales level in #5 above, what is the company's Margin of Safety

please list answers out by number image text in transcribed
s. If Giannis' company reaches the targeted sales level in #5 above, what is the company's Margin of Safety in sales dollars. Round dollars to nearest cent. Calculation Answer Margin of safety in dollars 6. Go back to the data assumed in #1. Giannis is worried that he overpriced the market. He is considering dropping the sales price by $0.20 to $5.80 per yogurt. If he enacts an advertising campaign costing $18,000 to publicize this price drop, he believes that he can double the number of units sold. Prepare a revised contribution margin income statement showing the impacts of these changes: Answer Calculation Sales level in units Sales Variable expenses Contribution margin Fixed expenses Net operating income Should Giannis run the advertising campaign? Yes/No (circle answer) Explain: 7 1. Calculate Giannis' new Degree of Operating Leverage if all of the above (#6) is enacted (round to one decimal place): Calculation Answer Degree of Operating Leverage s. If Giannis' company reaches the targeted sales level in #5 above, what is the company's Margin of Safety in sales dollars. Round dollars to nearest cent. Calculation Answer Margin of safety in dollars 6. Go back to the data assumed in #1. Giannis is worried that he overpriced the market. He is considering dropping the sales price by $0.20 to $5.80 per yogurt. If he enacts an advertising campaign costing $18,000 to publicize this price drop, he believes that he can double the number of units sold. Prepare a revised contribution margin income statement showing the impacts of these changes: Answer Calculation Sales level in units Sales Variable expenses Contribution margin Fixed expenses Net operating income Should Giannis run the advertising campaign? Yes/No (circle answer) Explain: 7 1. Calculate Giannis' new Degree of Operating Leverage if all of the above (#6) is enacted (round to one decimal place): Calculation Answer Degree of Operating Leverage

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

3. What could be done to prevent these types of situations?

Answered: 1 week ago