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T +4:45 6100= 90% courseware.cbu.ca + Is The Ca Get Homewo... Information I... Get Homewo... Which Of Th... x courseware.... Aladdin Cor... Aladdin Cor... University
T +4:45 6100= 90% courseware.cbu.ca + Is The Ca Get Homewo... Information I... Get Homewo... Which Of Th... x courseware.... Aladdin Cor... Aladdin Cor... University Introductory Managerial Accounting Test 2 3. Tinkerbell's Toys Limited has the following contribution income statement for the year ended December 31, 2018. $ Sales Variable expenses Contribution margin Fixed expenses Operating income 900,000 540,000 360,000 225,000 135,000 $ The company has no beginning or ending inventories and produced and sold units during the year. 30,000 Required: a. What is the company's contribution margin ratio? b. What is the break even point in units for Tinkerbell's? c. How many units would Tinkerbell's have to sell to attain an operating income of $171,000 d. The manager of Tinkerbell's, Mr. Peter, feels that if they reduce the selling price by 5% and increase their advertising by $25,000 they can increase the units sold by 25%. Would you recommend that the company does as Mr Peter suggests? (be sure to support your answer)
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