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The following is Alsatian Corporation's contribution format income statement from last month: Sales(2000 units x $70) $140,000 Less: Variable Costs 84,000 Contribution Margin 56,000 Less:

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The following is Alsatian Corporation's contribution format income statement from last month: Sales(2000 units x $70) $140,000 Less: Variable Costs 84,000 Contribution Margin 56,000 Less: Fixed Expenses 24,000 Operating Income $32,000 The company has no beginning or ending inventories and produced and sold 2,000 units during the month. Required: A/ What is the company's break-even sales in $(2) B/ If the sales volume increases by 10% and variable costs/unit decreases by $2.00, what will the new operating income be? Produce a CVP statement (3) C/ What sales in units would be required to attain an operating income of $39,000(2) D/ What is the company's margin of safety in dollars and stated as a %? (2) E Part 1: What is the company's degree of operating leverage based on the original data?(1) Part 2: Using your answer to Part 1, if sales increased by 15% above the amounts in the original data, how much in S would net income increase? (2) F/ If the business requires an operating income of 20% of sales, what will be the required sales in S, assuming all costs and selling prices remain as in the original data? (4) G/Suppose Alsatian Corporation had a tax rate of 25% and wants to earn an after tax net income of $24,000. Calculate the sales in units that would be needed from the original data? (3)

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