Required Information Problem 12-25 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 (The following information applies to the questions displayed below.] Marathon Company makes and sells a single product. The current selling price is $19 per unit. Variable expenses are $11.4 per unit, and fixed expenses total $56,240 per month. (Unless otherwise stated, consider each requirement separately.) Problem 12-25 (Algo) Part a Required: a. Calculate the breakeven point expressed in terms of total sales dollars and sales volume. Note: Do not round intermediate calculations. Breakeven sales Breakeven volume $ 140,600 7,400 units Required information Problem 12-25 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information applies to the questions displayed below] Marathon Company makes and sells a single product. The current selling price is $19 per unit. Variable expenses are $11.4 per unit, and fixed expenses total $56,240 per month. (Unless otherwise stated, consider each requirement separately) Problem 12-25 (Algo) Part b b. Calculate the margin of safety and the margin of safety ratio. Assume current sales are $159,600. Note: Do not round intermediate calculations. Round your percentage answer to 2 decimal places. Margin of safety $ 19,000 Margin of safety of ratio 11.83 % Required information Problem 12-25 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information applies to the questions displayed below] Marathon Company makes and sells a single product. The current selling price is $19 per unit. Variable expenses are $11.4 per unit, and fixed expenses total $56,240 per month. (Unless otherwise stated, consider each requirement separately) Problem 12-25 (Algo) Part c c. Calculate the monthly operating income (or loss) at a sales volume of 7,400 units per month. Note: Do not round intermediate calculations. Operating loss Required information Problem 12-25 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information applies to the questions displayed below.] Marathon Company makes and sells a single product. The current selling price is $19 per unit. Variable expenses are $11.4 per unit, and fixed expenses total $56,240 per month. (Unless otherwise stated, consider each requirement separately) Problem 12-25 (Algo) Part d d. Calculate monthly operating income (or loss) if a $2 per unit reduction in selling price results in a volume increase to 8,250 units per month. Note: Do not round intermediate calculations. Operating loss Required Information Problem 12-25 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information applies to the questions displayed below] Marathon Company makes and sells a single product. The current selling price is $19 per unit. Variable expenses are $11.4 per unit, and fixed expenses total $56,240 per month. (Unless otherwise stated, consider each requirement separately.) Problem 12-25 (Algo) Part f f. 1. Calculate the monthly operating income (or loss) that would result from a $1 per unit price increase and a $6,000 per month increase in advertising expenses, both relative to the original data. Assume a sales volume of 7,400 units per month. 2. Is the increase in advertising expense justified by the price increase? Complete this question by entering your answers in the tabs below. Required F1 Required F2 Calculate the monthly operating income (or loss) that would result from a $1 per unit price increase and a $6,000 per month increase in advertising expenses, both relative to the original data. Assume a sales volume of 7,400 units per month. Note: Do not round intermediate calculations. Operating income Required F2> Required information Problem 12-25 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information applies to the questions displayed below] Marathon Company makes and sells a single product. The current selling price is $19 per unit. Variable expenses are $11.4 per unit, and fixed expenses total $56,240 per month. (Unless otherwise stated, consider each requirement separately) Problem 12-25 (Algo) Part g & h Management is considering a change in the sales force compensation plan. Currently each of the firm's two salespeople is paid a salary of $2,500 per month. g. 1. Calculate the monthly operating income (or loss) that would result from changing the compensation plan to a salary of $400 per month, plus a commission of $0.9 per unit, assuming a sales volume of 7,400 units per month. 2. Calculate the monthly operating income (or loss) that would result from changing the compensation plan to a salary of $400 per month, plus a commission of $0.9 per unit, assuming a sales volume of 7,150 units per month. h. 1. Assuming that the sales volume of 7,150 units per month achieved in part g could also be achieved by increasing advertising by $1,000 per month instead of changing the sales force compensation plan. What would be the operating income or loss? 2. Which strategy would you recommend? Complete this question by entering your answers in the tabs below. Req G1 to Hi Req H2 Complete this question by entering your answers in the tabs below. Req G1 to H1 Req H2 9-1. Calculate the monthly operating income (or loss) that would result from changing the compensation plan to a salary of $400 per month, plus a commission of $0.9 per unit, assuming a sales volume of 7,400 units per month. Note: Do not round Intermediate calculations. g-2. Calculate the monthly operating Income (or loss) that would result from changing the compensation plan to a salary of $400 per month, plus a commission of $0.9 per unit, assuming a sales volume of 7,150 units per month. Note: Do not round Intermediate calculations. Losses should be indicated by a minus sign. h-1. Assuming that the sales volume of 7,150 units per month achieved in part g could also be achieved by increasing advertising by $1,000 per month instead of changing the sales force compensation plan. What would be the operating Income or loss? Note: Do not round Intermediate calculations. Losses should be indicated by a minus sign. Operating income Show less A 91 g2 Operating income h1 Operating income