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Sales revenue 8 0 2 3 4 per unit Variable cost 5 0 5 3 7 per unit Contributon margin 2 9 6 9 7

Sales revenue 80234 per unit
Variable cost 50537 per unit
Contributon margin 29697 per unit
Fix cost 9,707
Operating income 19990
Requirement 13
Use the contribution margin apCoproach to compute the change in net operating income if the selling price increases by 5%, variable costs increase by
2% and because of these decisions sales fall by 15 units.
Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data.
Use the Excel ROUNDUP function to obtain whole units if applicable. Indicate decreases in red.
New Operating Income
change in Operating Income
Requirement 14
Use the contribution margin approach to compute the change in net operating income if the selling price per unit increases by $25,000 per unit and
because of this decision sales volume decreases by 15 units.
Reference the DATA cell(s) in your formula below. Format as number.
Use the Excel ROUNDUP function to obtain whole units if applicable. Indicate decreases in red.
New Operating Income
change in Operating Income
Is increasing the selling price a good idea?
Requirement 15
Use the contribution margin approach to compute the change in net operating income if sales increase by 6% attributed to an increasse in
advertising spending of 12,000.
Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data.
Use the Excel ROUNDUP function to obtain whole units if applicable. Indicate decreases in red. units
New Operating Income
change in Operating Income
Is increasing advertising spending a good idea?
Requirement 16
Use the contribution margin approach to calculate margin of safety in dollars, as a percent and in units.
Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data.
Use the Excel ROUNDUP function to obtain whole units if applicable. Indicate decreases in red.
Margin Safety UNITS
Margin Safety $
Margin Safety %
Requirement 17
Use the contribution margin approach to calculate operating leverage.
15%?
What is the New Operating Income?
Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data.
Operating Leverage
Change in Operating Income %
New Operating Income $
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