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Please show computations for all 11 questions. Managerial Accounting (ACC 121) Test 3, Fall 2017 Instructions: Please make sure that you answer all parts and
Please show computations for all 11 questions.
Managerial Accounting (ACC 121) Test 3, Fall 2017 Instructions: Please make sure that you answer all parts and mark your answers for each part Credit will be given only if all computations are shown Due date is the first class next week Question 1: Data for Hermann Corporation are shown below Per UnitPercent of Sales Selling price Variable expenses $30 Contribution margin $50 Fixed expenses are $15,000 per month and the company is selling 2,000 units per monch. Required: S80 100% 375% 62.5% 1. Calculate the break-even quantity 2. Calculate the break-even sales. . How much will net operating income increase (decrease) per month if the monthly 5. 6. 7. advertising budget increases by $5,000 and monthly sales increase by $8,000 Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense byS2 per unit and increase unit sales by 10%. Refer to the original data. Calculate the unit sales needed to attain a target profit of 10,000 Refer to the original data. Calculate the dollar sales meeded to attain a target profit of $15,000 Refer to the original data. What is the company's margin of safety? 8. Refer to the original data. What is the company's marngin of safety as a percentage of its 10. Refer to the original data. Using the degree of operating leverage, estimate the impact on 11. Refer to the original data. Verify your estimate from part (10) above by constructing a sales? Refer to the original data. What is the company's degree of operating leverage? net operating income of a 5% increase in sales. new contribution format income statement for the company assuming a 5% increase in salesStep by Step Solution
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