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Scenario 1 : Assume Osprey ships 20 helicopters andmaintains the same contribution margin percentage shownabove , Basic manufacturing cost is assumed to beunchanged or same
Scenario 1 : Assume Osprey ships 20 helicopters andmaintains the same contribution margin percentage shownabove , Basic manufacturing cost is assumed to beunchanged or same . The average selling price per unitremains the same , but operating expenses will increase by5% to support higher shipment level .What will be the pro forma operating profit ?Scenario 2 : Assume Osprey Keeps the shipment level at 15units , but increases the average selling price per unit by10 %What will be the pro forma operating income ?Explain the difference in pro- forma operating income inScenario 1 versus Scenario 2
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