Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 per unit
Variable cost per unit
Contributon margin per unit
Fix cost
Operating income
Requirement
Use the contribution margin apCoproach to compute the change in net operating income if the selling price increases by variable costs increase by
and because of these decisions sales fall by units.
Reference the DATA cells 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
Use the contribution margin approach to compute the change in net operating income if the selling price per unit increases by $ per unit and
because of this decision sales volume decreases by units.
Reference the DATA cells 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
Use the contribution margin approach to compute the change in net operating income if sales increase by attributed to an increasse in
advertising spending of
Reference the DATA cells 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
Use the contribution margin approach to calculate margin of safety in dollars, as a percent and in units.
Reference the DATA cells 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
Use the contribution margin approach to calculate operating leverage.
What is the New Operating Income?
Reference the DATA cells in your formula below. Format as a number. Always refer to the original data.
Operating Leverage
Change in Operating Income
New Operating Income $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started