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Tyrene Products manufactures recreational equipment. The operating results for the most recenf year for ane of its prodicks, a skateboard, are presented below. Management is

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Tyrene Products manufactures recreational equipment. The operating results for the most recenf year for ane of its prodicks, a skateboard, are presented below. Management is anxious to maintain and perhaps even improve its present level of income from the skateboards. Required: 1-o. The company's break-even point for the most recent year was 54,400 units. Compute the CM per skateboard. (Do not round intermediote calculations.] 1-b. Compute the selling price and variable expenises per skateboard, (Do not round intermediate calculations. Round your answars to 2 decimal ploces.) 1.b. Compute the selling price and variable expenses per skateboard. (Do not round intermedinte calculations. Round your arivers to 2 decimal places.) 1-c. Compute the number of skateboards sold in the most recent year. (Do not round intermediote calculations.) 1-d. Compute the degree of operating leverage at the level of sales that you computed in Requirement (lc). 2. Due to an increase in tabour tates, the company estimates that variable expenses wili increace by 53.00 per skatebourd next you if this change takes place and the seline paice per skateboard remains constant, what will the the new CM ratio and the new beseik even. point in skateboards? (Do not round intermedinte calculations.) 3. Refer to the data in Requirement (2) above. If the expected change in varlable costs takes place, how many skateboards will have to be sold next year to earn the same net operating income, $204,000, as in the most recent year? (Do not round intermedinte calculations.) 4. Refer again to the data in Requilement (2) above. The president has decided that the company may have to ratie the seaing price of its skateboards. If Tyrene Products wants to maintain the sanie CM rabio as last year, what selling ptice per skateboud must it charge next year to cover the increased labour costs? (Do not round intermediote calculations. Round your answer to 2 decimal places) 5. Refer to the originat data. The company is considering the construction of a naw, automated plant. The new plani moidd resuit in the contribution margin per unit increasing by 60N, but it would casse fived costs to increase by 90%. If the new plant is trait what wowidi be the company's new CM ratio and new break ewen point in skateboads? (Do not round intermediate esieulstions). 6. Refer to the data in Requirement (5) above 0. If the new plant is built, how many skateboards will have to be sold next year to earn the same net operating incame, $204,000, ass last yeat? (Do not round intermediote calculotions.) b-1. Assume that the new plant is constructed and that next year the compariy manufactures and selks the same number of skateboards as sold in the most recent year. Prepare a contribution format income statement. (Do not round intermediate calculations.) b-1. Assume that the new plant is comstracted and that noxt year the company mamelactures and sells the sane inumier uf. MKateboards as sold in the most recent yeat. Prepare a contribution format income statement. (Do not round intermedinte colculations.) b-2. Compute the degree of operating leverage. (Do not round intermedinte calculations.)

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