The following table summarizes the operating results for Bene Petit's first year of operations:

Bene Petit First year operating data:
	Single (1 serving)	Dual (2 servings)	Family (4 servings)	Total
Customer Meals Sold	3,000	5,000	12,000	20,000
Total Customer Servings	3,000	10,000	48,000	61,000
Customer Orders (Average = 4 meals per order)	750	1,250	3,000	5,000
Number of Donated Meals (1 per customer meal)	3,000	5,000	12,000	20,000
Number of Donated Deliveries (500 meals per delivery)	6	10	24	40

Price Per Serving	$ 5.00	per customer serving
Variable Costs:
Direct Materials ($1 per serving)	$ 1.00	per customer serving
Direct Labor ($0.75 per customer meal)	$ 0.75	per customer meal
Variable Manufacturing Overhead 60% of DL	60%	of direct labor cost
Variable cost of donated meals	$ 1.25	per donated meal
Variable delivery expenses (customer meals)	$ 2.00	per customer order
Variable delivery expenses (donated meals)	$ 125.00	per delivery
Fixed costs:
Fixed manufacturing costs	$ 75,000

	Single Serving	Dual Serving	Family Size	Total
Total Sales Revenue ($5 per serving)	$ 15,000	$ 50,000	$ 240,000	$ 305,000
Less: Variable costs:
Customer Meals:
Direct Materials ($1 per customer serving)	$ 3,000	$ 10,000	$ 48,000	$ 61,000
Direct Labor ($0.75 per customer meal)	2,250	3,750	9,000	15,000
Variable Manufacturing Overhead (60% of Direct labor)	1,350	2,250	5,400	9,000
Variable Manufacturing Cost ($1.25 per donated meal)	3,750	6,250	15,000	25,000
Customer Delivery Expenses ($2 per customer order)	1,500	2,500	6,000	10,000
Donation Delivery Expense ($125 per delivery )	750	1,250	3,000	5,000
Total Variable Costs	$ 12,600	$ 26,000	$ 86,400	$ 125,000
Total Contribution Margin	$ 2,400	$ 24,000	$ 153,600	$ 180,000
Less: Fixed Costs Allocated Based on Sales Revenue
Fixed Manufacturing Expenses	$ 3,689	$ 12,295	$ 59,016	$ 75,000
Fixed Selling Expenses	1,426	4,754	22,820	29,000
Fixed Administrative Expenses	1,967	6,557	31,475	40,000
Total Fixed Expenses	7,082	23,607	113,311	144,000
Net Operating Profit	$ (4,682)	$ 393	$ 40,289	$ 36,000
	Single Serving	Dual Serving	Family Size	Overall
Average Contribution Margin Per Meal Sold	$ 0.80	$ 4.80	$ 12.80	$ 9.00
Average Contribution Margin Ratio (% of Revenue)				59.02%

Additional information about selling prices, variable costs and fixed costs is summarized below:

The average sales price for customer meals is $5 per serving.

The average direct materials (ingredients) cost of customer meals is $1 per serving.

Direct labor costs average $0.75 per customer meal.

Variable manufacturing overhead costs are applied at a rate equal to 60% of direct labor.

Delivery expense for customer meals is $2 per customer order.

The incremental cost of producing the donated meals is $1.25 per meal.

Delivery expense for donated meals is $125 per delivery to community partners.

The following fixed costs are allocated to customer meals based on total sales revenue:

Fixed manufacturing overhead costs are $75,000 per year.

Fixed selling expenses are $29,000 per year.

Fixed administrative expenses are $40,000 per year.

1a. in a "what if" analysis, how will operating results change if sales increase by 12% during the second year of operating.

What is the new net operating income?

1b. . What is the new degree of operating leverage?

1c. If sales increased by 10% in the third year, what percentage growth in profit can the company expect?

1d. What is the predicted operating profit in year 3?

Assume that the sales mix shifts to be 10% single serving, 20% dual serving and 70% family-size, with all other variables remaining the same?

2a. What is the new average contribution margin per meal sold?

2b. How many total meals must be sold to earn $106,000 in net operating income.

3a. Assume that Taylor is considering raising the price per serving by 20%, but expects a corresponding drop in demand. How much would profit increase or decrease compared to the starting profit of $36,000?

4a. If Bene Petit wants to increase net operating income to $121,400 by changing only the selling price per serving, what should the new price be