Stratford company

Stratford Company distributes a lightweight lawn chair that sells for $30 per unit. Variable expenses are 40% of sales, and fixed expenses total $489,600 annually. Required: Answer the following independent questions: 1. What is the product's CM per unit? Book Contribution margin per unit Print erences 2. Use the CM per unit to determine the break-even point in units. Break-even point in units Prev 1 of 4 Next > ere to search 10 JA 0C 2 fa 2 ENG 21:11 15-03 2022 3. The company estimates that sales will increase by $75,000 during the coming year due to increased demand. By how much should net operating income increase? Increase in operating income Book Print erences 4. Assume that the operating results for last year were as follows: Sales Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income $1,020,000 408,000 612,000 489,600 $ 122,400 Prev Next > 1 of 4 *** aw 21 0C 18 10 ENG 21:1 15-03- 0C here to search WHETH****** Mc Graw Hill 21 30C 0 D) ENG 15-03 5-a. Refer to the original data. Assume that the company sold 36,000 units last year. The sales manager is convinced that a 7% reduction in the selling price, combined with a $140,000 increase in advertising expenditures, would increase annual unit sales by 40%. Prepare two contribution format income statements: one showing the results of last year's operations, and one showing what the results of operations would be if these changes were made. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.) ints Last Year Proposed Total Per Unit Total Per Unit eBook Sales Print References Prev 1 of 4 Next > Mc Graw Hill 0C & d) ENG