Answered step by step
Verified Expert Solution
Question
1 Approved Answer
take me to the text EG8 Funa Procesung manufactures and sells carned tuna. Variatle cost per can amounts to $11 and the seling price of
take me to the text EG8 Funa Procesung manufactures and sells carned tuna. Variatle cost per can amounts to $11 and the seling price of exch can is $33 - Total annual fixed costs amount to $9,157,500. Sales are estimuted to amount to 1,110,000 cans of tuna. Do not enter doliar signs or commis in the inout boxes. a) Colculate the followina values Gross Sales 5 Total Vanable Costs- 5 Contribution Margin. Operating incorne b) If the company sells according to their estimates, what is the degree of operating leverage? The break even point (in units)? Bound the degree of operating leverage to 2 decimal places. Degree of operating leverage Break-even Point (units): c) if the company increases the sales volume (cans) by 33%, by what percentage will operating income increase? by what dollar amount wil operating incorne increase? Use the degree of operating leverage. Bound the percentageinciease to 2 decimalplaces. Percentage increase: % Dollar increase: 1 If the company spends $27,000 as additional advertising expense (foxed cost) sales wolume will increase by 11%, Determine the new operating leverag nd the new break-even point in units. ound the degree of operating leverape to 2 decimal places. egree of operating leverage: x
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