1. Referring to the original Budgeted P&L and using DOL, estimate the increase in pretax operating income if sales volume increased by 5%.
2. Determine the breakeven point, in units, for the Circular Saw product line individually.
3. Determine the budgeted weighted average contribution margin ratio (WACM%) for the cordless division.
4. Determine the budgeted sales mix based on revenue.
5. Assume the current sales mix remains the same as expected in the quarter; determine the sales revenue (in total and by product line) necessary for the division to achieve $80,000 after-tax profit.

Pittsburgh Tools - Cordless Division Budgeted Quarterly Product Line Contribution Margin Analysis 18v Light 18v Drill/Driver 4,300 $537,500 $125.00 223,600 52.00 $313,900 $73.00 18v Circular Saw 3,100 $465,000 $150.00 210,800 68.00 $254,200 $82.00 $279,500 156,520 $122,980 5,590 $50.00 28.00 $22.00 Total 12,990 $1,282,000 590,920 $691,080 Sales Volume (units) Revenue Variable costs Contribution Margin Assigned Fixed Costs Production costs Segment Margin Common Fixed Production Fixed SG&A expenses Operating income Income taxes (21%) Net Operating income 128,000 $185,900 132,000 $122,200 113,000 $9,980 373,000 $318,080 30,000 200,000 $88,080 18,497 69,583 $