Take me to the text CHC Salmon Processing manufactures and sells canned salmon to restaurants. Variable cost per can amounts to $6 and the selling price of each can is $24. Total annual fixed costs amount to $12,627,692. Sales are estimated to amount to 1,140,000 cans of salmon. Do not enter dollar signs or commas in the input boxes. Round dollar answers to the nearest whole number and round BE units up to the nearest whole number, unless otherwise indicated. a) Calculate the following values. Gross Sales: $ 27360000 Total Variable Costs: $ 6840000 Contribution Margin: $ 20520000 Operating Profit: $ 7892308 b) If the company sells according to their estimates, what is the degree of operating leverage? The break-even point (in units)? Round the degree of operating leverage to 2 decimal places. Degree of operating leverage: 2.60 Break-even Point (units): 701538 c) If the company increases the sales volume (cans) by 36%, by what percentage will operating profit increase? By what dollar amount will operating income increase? Use the degree of operating leverage. Round the percentage increase to 2 decimal places. Percentage Increase: 93.6 Dollar Increase: $ 7387200 d) if the company spends $24,000 as additional advertising expense (fixed cost), sales volume will increase by 8%. Determine the new operating leverage and the new break-even point in units. Round the clegree of operating leverage to 2 decimal places. Degree of operating leverage: Break-even point (units): Check Bagel Land operates a bagel store in Niagara Falls. The owner has provided the following budgeted data for next year. Revenue $11,916 Fixed Costs $3,501 Variable Costs (depends on the # of bagels sold) $7,340 For each of the following scenarios, determine the dollar impact on Bagel Land. Consider each scenario independently. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Enter all values as positive values. Do not use the negative sign. i. A 3% increase in fixed costs. Revenue: No change $ 0 Variable Costs: No change $ 0 Fixed Costs: Increase by. $ 105 Contribution Margin: No change $ 0 Budgeted Operating Profit: Decrease by $ 105 ii. A 15% increase in contribution margin, but holding revenue constant. Revenue: No change $ 0 Variable Costs: Decrease by $ 4576 Fixed Costs: No change $ 0 Contribution Margin: Increase by $ 4576 Budgeted Operating Profit: Increase by 4576 iii. A 17% increase in fixed costs and 15% increase in units sold. Revenue: Increase by . $ 1787 Variable Costs: Increase by $ 1101 Fixed Costs: Increase by $ 595 Contribution Margin: Increase by $ 686 Budgeted Operating Profit: Decrease by. $ 91
