Question
Question text Randy Company has two branches in different countries (Branch 1 and Branch 2, the data related for two branches are following Branch 1
Question text Randy Company has two branches in different countries (Branch 1 and Branch 2, the data related for two branches are following Branch 1 Branch 2 Selling Price per unit $50 $35 Variable Cost per unit $30 $20 Fixed Cost $600,000 $300,000 Estimated Unit sales 50,000 30,000 Compute the following Break even point in units of Branch 1 Answer 1 Break even point in units of Branch 2 Answer 2 Break even point in Revenue of Branch 2 Answer 3 Break even point in Revenue of Branch 1 Answer 4 Contribution Margin Percentage for Branch 1 (CM%) Answer 5 Contribution Margin Percentage for Branch 2 (CM%) Answer 6 Margin of Safety percentage for Branch 1 (MOS%) Answer 7 Margin of Safety percentage for Branch 2 (MOS%) Answer 8 Degree of Operating Leverage for branch 1 (DOL) Answer 9 Degree of Operating Leverage for branch 2 (DOL) Answer 10 if sales of Branch 1 could be increased by 10% what is the percentage of increase in Operating Income (using Degree of operating leverage) Answer 11 if sales of Branch 2 could be increased by 10% what is the percentage of increase in Operating Income (using Degree of operating leverage) Answer 12 How many units should they sell in Branch 1 to reach a target OPI of $100,000 Answer 13 How many units should they sell in Branch 2 to reach a target OPI of $150,000 Answer 14 In Branch 1 if sales increased by $200,000 the contribution margin will increase by (use CM%) Answer 15
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