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Question 1 Mary Smith sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue $60,500 Cost of
Question 1 Mary Smith sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue $60,500 Cost of goods sold (all variable) 26,500 Gross margin 34,000 Selling expenses (20% variable) 9,300 Administrative expenses (60% variable) 11,000 $13,700 Operating income XYour answer is incorrect. Try again. If Mary can increase sales by 10%, by how much will her operating income increase? (Round answer to 0 decimal places, e.g.5,275) Increase in operating income $: Question 2 Crane, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $32 and are sold for $47. Glass pitchers cost $41 and are sold for $62. All other costs are fixed at $2,358,720 per year. Current sales plans call for 33,600 plastic pitchers and 100,800 glass pitchers to be sold in the coming year. x Your answer is incorrect. Try again How many pitchers of each type must be sold to break even in the coming year? (Use contribution margin per unit to calculate breakeven units.) Glass pitchers
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