Question
The Boulder Technology Center has its most recent contribution margin income statement shown on the worksheet. In each of the following scenarios, calculate the values
The Boulder Technology Center has its most recent contribution margin income statement shown on the worksheet. In each of the following scenarios, calculate the values indicated. (CALCULATE ALL CHANGES FROM THE BEGINNING SCENARO OF NUMBERS)
A.) The breakeven point in dollars and units.
B.) The sales volume decreases by 10% and the price increase by $4.00 per unit.
C.) The selling price decreases $2.00 per unit, fixed expenses increase by $300,000, and the sales volume increases by 80%.
D.) The selling price increases by 35%, variable expense increases by $21.50 per unit, fixed expenses decrease to $385,000, and the sales volume decreases by 15%.
E.) The selling price increases by $7.00 per unit, variable cost increases by 14% per unit, fixed expenses increase by $363,940, and sales volume increases by 4.2%
Calculate the Degree of Operating Leverage for all five scenarios.
Base CVP Scenario -Base ALL OTHER Calculations from this set of numbers! Total Per unit Volume - Units 2,500,000 50.00 2,000,00040.00 Sales Variable expenses Contribution margin Fixed expenses Net operating income 50,000 500,000 10.00 300,000 200,000 Determine the break-even point in dollars and units Selling price increases by 35%, variable expense increases by $21.50 unit ed expenses decrease to S 385,000, sales volume decreases by 15% Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 50.00 5 40.00 10.00 Sales Variable expenses Fixed expenses Net operating income Degree of operating leverage Degree of operating leverag #DIV Sales volume decreases by 10% and the price increases by $4.00 per unit Selling price increases by $7.00 per unit, variable cost increases by 14% ed expenses increase by $363,940, and sales volume increases by 4.2% Sales Variable expenses Contribution margin Fixed expenses Net operating income Sales Variable expenses Contribution margin Fixed expenses Net operating income Degree of operating leverage #DIV Degree of oper ating leverage #DIV/O! Selling price decreases by $2.00 per unit, fixed expenses increase by $300,000, and the sales volume increases by 80% Sales Variable expenses Contribution margin Fixed expenses Net operating income Degree of operating leverage #DIV
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