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Sales Price per unit $44/unit Contribution Margin 30% $278,400 $ 70,080 Fixed Costs Net Income 1) Looking at this data, how many units did
Sales Price per unit $44/unit Contribution Margin 30% $278,400 $ 70,080 Fixed Costs Net Income 1) Looking at this data, how many units did you sell? (2 points) 2) Calculate Breakeven point in units (2 points) 3) Calculate Breakeven point in dollars (2 points) 4) Calculate the company's operating leverage (take it out to 3 decimal places, 2 points) 5) Currently what is your margin of safety in units? (2 points) If sales increase by 5% and contribution margin per unit and fixed costs don't change. what will net income be? (3 points) 7) How many units must the company sell if it wishes to make a profit of $100,000? (3 points) 8) Looking at the original data, you are thinking of having a new advertising campaign, you would spend $20,000. How many units would you need to sell if you wish to have Net Income increase by 15%? (3 points) 9) Looking at the original data, you are thinking about cutting your price by 5%, how many units would you now need to sell to increase net income by 10%? (3 points)
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