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Pringle Company distributes a single product. The companys sales and expenses for a recent month follow: Total Per UnitSales $ 5 6 0 , 0

Pringle Company distributes a single product. The companys sales and expenses for a recent month follow: Total Per UnitSales $560,000 $80Variable expenses 392,00056Contribution margin 168,00024Fixed expenses 150,000Net operating income $18,000Instructions:1. What is the monthly break-even point in unit sold and in sales dollars?2. What is the companys CM ratio and the variable expense ratio?3. Without resorting to computations, what is the total contribution margin at the break-even point?4. If monthly sales increase by $80,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?5. Refer to the original data. Compute the companys margin of safety in both d o l l a r and p e r c e n t a g e terms.6. How many units would have to be sold each month to earn a target profit of $18,000?7. Pringle Company is considering enhancing its profits by adding a high quality speaker to its telephone devices. The variable expenses per unit will change from $56(current) to be $60(proposed). The suggestion will reduce fixed expenses from $150,000(current) to be $102,000(proposed). If sales per unit equal $80(will not change)and the company sells 10,000 units, by how much will the profits increase/ decrease?8. Calculate the break-even sales in dollars for the proposed plan in required 7.

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