Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 124 points) Refer again to the original data of Relax Company for the year ended on December 31, 2019: Totals Sales Less variable

image text in transcribed
Question 2 124 points) Refer again to the original data of Relax Company for the year ended on December 31, 2019: Totals Sales Less variable costs Contribution margin Less Fixed Costs 2,400,000 1,800,000 600,000 250,000 350,000 Net Operating income During 2019, company's selling price per unit and variable cost per unit has been so and 540 respectively Calculate A Assume that in upcoming year of 2020, company management wants to earn a minimum profit of $150,000, how many units will have to be sold by the mark company to get this target profit? b. 8. Compute the company's degree of operating leverage at the current sales level. What the answer means? (8 marks) 6. C.The management is considering using the high quality material for the product. This will increase the variable cost per unit by s5 but the use of high quality materials could increase the sales by 25 of the current sales volume. Prepare a proposed contribution format income statement for the year 2019 and would you suggest that changes be made? (8 marks)

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

Practitioners Guide To Business Impact Analysis Internal Audit And IT Audit

Authors: Priti Sikdar

1st Edition

036756792X, 978-0367567927

More Books

Students also viewed these Accounting questions

Question

If E[X] = 1 and Var(X) = 5, find (a) E[(2 + X)2]; (b) Var(4 + 3X).

Answered: 1 week ago

Question

Identify cultural barriers to communication.

Answered: 1 week ago