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Required information (The following information applies to the questions displayed below.) Income Statement Sales (1,898 units) Variable expenses Contribution margin Fixed expenses Net operating income
Required information (The following information applies to the questions displayed below.) Income Statement Sales (1,898 units) Variable expenses Contribution margin Fixed expenses Net operating income 45, ose 31.500 13,500 8.640 4,860 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? The new sales volume is within the relevant range. Net operating income Required information (The following information applies to the questions displayed below.) Income Statement Sales (1,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 45, ese 31,see 13,500 8.640 55 41 4.86e 7. If the variable cost per unit increases by $1. spending on advertising increases by $1,350, and unit sales increase by 170 units, what would be the net operating income? The new sales volume is within the relevant range. Net operating income Required information [The following information applies to the questions displayed below.) $ Income Statement Sales (1,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 45, eee 31,5ee 13,500 8,640 4,860 8. What is the break-even point in unit sales? Break-even point - units Required information (The following information applies to the questions displayed below.) $ Income Statement Sales (1,eee units) Variable expenses Contribution margin Fixed expenses Net operating income 45,000 31,500 13,500 8,640 4,860 9. What is the break-even point in dollar sales? Break-even point Required information [The following information applies to the questions displayed below.) Income Statement Sales (1,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 45,000 31,500 13,500 8,640 4,860 4:48 10. Assuming the increase is within the relevant range, how many units must be sold to achieve a target profit of $8,100? Number of units Required information [The following information applies to the questions displayed below.] $ Income Statement Sales (1,eee units) Variable expenses Contribution margin Fixed expenses Net operating income 45,000 31,500 13,500 8,640 4,860 $ 11. What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety percentage Required information (The following information applies to the questions displayed below.] $ Income Statement Sales (1,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 45,000 31,500 13,500 8,640 4,860 12. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Required information (The following information applies to the questions displayed below.) Income Statement Sales (1,eee units) Variable expenses Contribution margin Fixed expenses Net operating income 45, eee 31,5ee 13,5ee 8,640 4,860 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales The increase in sales is within the relevant range. (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income
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