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? The following cost sheet contain information about TMZ Corporation: Required: 1. Calculate the Contribution Margin Ratio for TMZ. Calculate the Break even point in
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The following cost sheet contain information about TMZ Corporation: Required: 1. Calculate the Contribution Margin Ratio for TMZ. Calculate the Break even point in units and dollar sales. 2. If 16,000 units are sold during the month, what will be the net operating income. (Show Income Statement in Contribution Format) 3. If the company wants to earn profit of $180,000, how many units of products they must sell? 4. What will be the margin of satety in units and in percentage when the company sells 16,000 units? (Show workings clearly) 5. The manager of the company predicts that by giving an additional $1.00 as sales commission to the sales person, the unit sales will increase by 1,000 units. Should the company go with the managers decision? (Assume that the company currently sells 16,000 units) (Show workings clearly). 6. The manager of the company predicts that by decreasing sales price by 10% and spending an additional $5,000 on advertising, unit sales will increase by 15%. Should the company go withStep by Step Solution
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