use the variable costing information (given and results) from connect to provide the information

. t 1 Normal 1 No Spaci... Heading 1 Heading 2 Title Subtitle Styles Paragraph WILUTULOVES Ver 5) Use the variable costing information (given and results) from CONNECT to provide the information required bdow. Express Net Operating Income in a formula like that used on page 196 of your text. Profit=(unit CMXQ) - Fixed Expenses. Remember to SHOW YOUR WORK!!! a) Sales price per unit b) Variable Expense per unit (include S&A!!) c) Contribution margin per unit d) Contribution margin percentratio e) Contribution margin in dollars ) Profit formula NOI = Profit Q- where the first blank is the CM per unit and the second blank is Fixed Expenses Note: Check figures must be supported to earn credit for grading purposes. 6) Complete the table below assuming the indicated number of units were produced and sold. Remember to include S&A variable expenses in your variable expenses. Units produced sold Sales Revenue Variable Expenses Fixed Expenses Total Expenses Profit NOI yn percent ratio e) Contribution margin in dollars f) Profit formula NOI Profit where the first blank is the CMper unit and the second blank is Fixed Expenses Note: Check figures must be supported to earn credit forgrading purposes. 6) Complete the table below assuming the indicated number of units were produced and sold. Remember to include S&A variable expenses in your variable expenses Profit NOI Units Sales Variable Fixed Total produced sold Revenue Expenses Expenses Expenses 0 20,000 40,000 60,000 80,000 Note: Check figures must be supported to earn credit for grading purposes & 5 6 8 9. electric costs to be for the period? $8,250 +(0.49*150,000)= $81,750 EXPECTED ELECTRIC COST FOR THE PERIC 4) Shipping costs for the last 3 years have been as follows: Year 1: $126.000 Year 2: $115.000 Year 3: $131,500 a) Would the total cost of shipping be dependent on the numb units PRODUCED? NUMBER OF UNITS SOLD b) Use the 3 years of shipping expense given above and YOU & Rodi Space hedong Title Styles Paragraph Project Check Figures: Use to make sure you are heading in the right direction with the project All these answers need to be supported by your work (show work to arrive at these solutions) 3d Formula TC = 8250 +0.49 40 Fixed Costs per year $60,000 5b Variable expense per unit $44 6 Profit for 2 units (480,000) 8c Mos % 7.69% 10b) # of units 96,297 11c) # of units 80,000 12a breakeven # of units 45,284 12b MoS units 19,716 Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations Variable costs per unit: Manufacturing: Direct materials $ 22 Direct labor $ 14 Variable manufacturing overhead $ 5 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $270,000 Fixed selling and administrative expenses$ 210,000 During its first year of operations, Haas produced 60,000 units and sold 60.000 units. During its second year of operations it produced 75.000 units and sold 50.000 units. In its third year. Haas produced 40.000 units and sold 65,000 units. The selling price of the company's product is $52 per unit Project 1 (CVP) - Microsoft Word Mailings Review View . Heading 2 Normal I No Spaci... Heading 1 Title Styles Paragraph 7) Review pages 223 and 224from thetextbook Prepare a Cost-VolumeProfit graph for Hans Company a) Use the graph attached; label both the x and y axis using appropriate increments Dollar values should be used for the y axis and number of units for the x axis. b) Plot the Fixed Expense line. Label it c) Plot the Sales Revenue lime and label it d) Plot the Total Expense line and label it e) Indicate the Break-even Point on the graph and label it f) Shade and label the portion of the graph that indicates the company's positive profit. Base Year calculations: In order for Hans Company to consider any alternatives, they must first understand their current or "base" position Break-even, Margin of Safety and Degree of Operating Leverage are 3 criteria that can indicate the company's current situation. Use Haas's anticipated Year 4 information for these "base year" calculations 8) Margin of Safety evaluates the company's position compared to "break-even". Use the information from 6) above and your CONNECT problem to summarize the information in the table below Calculate the Margin of Safety in (a) dollars (b) units and (c) percent for Year 4. Remember, Haas Company produces and sells the same number of units in Year 4 that they SOLD in year 3 Brezovem Base Year 4 Units Sales Revenue NOI 2) Mos dollars b) Mos units c) Mos Note: Check figures mustbesupported to a credit for grading purposes 9) Calculate the Degree of Operating Leverage for Year 4 assuming nothing else changes Mailings Review View . T Normal 1 No Spaci... Heading 1 Heading 2 Title Paragraph Styles Looking at changes: Look at each situation below independently as a change to the "base" position. 10) Changing sales price:The new marketing director believes that Haas Company can sel more units of its product if they lower their sales price by 5% per unit. a) Calculate the new sales price and (11) contribution margin per unit. 1) new sales price 1) CM per unit m) What will the new Profit formula be? b) How many units will they need to sell to make the same operating income (NOI) as originally projected for year 4 (base assumption)? Note: Check figures must be supported to earn credit for grading purposes. 6) IF Haas Company can sell twice as many units times original units) with the decreased sales price, how much operating income will they make? (1) Should they lower the price? Explain your answer 1) Operating income 11) Should they 11) Increase to costs: The production manager is anticipating an increase to labor rates in the commg year such that variable expenses will increase by $1.50. Hint You may want to update the Profit formula for this change to assist in the calculations required here Remember to consider this change to the "base" assumption and disregard your work in 10) a) What will the CM ratio and Break-Even point in units be with the labor increase Note Requirement asks for CM ratio NOT contribution margin in dollars or contribution per unit Project 1 (CVP) - Microsoft Word erences Mailings Review View 11 AA Heading 2 T Normal 11 No Spaci.. Heading 1 Title Subtitle Paragraph Styles b) If they produce and sell the same number of units for Year 4 what will their new Net Operating Income, NOI, be? c) How many will Has need to sell to maintain the same operating come as originally planned for Year 4 Notes Check figure materapported to care credit for grading purposes d) Assume Has Company was to earn a profit of $50,000 for Year with base" assumption of units produced sold and the cost increase discussed her. What sales price (price per unit) should they use to sell their product Paragraph Styles 12) New Plant?The company is considering construction of a new automated manufacturing plant the new plant would slash variable expenses by 30% but would cause fixed expenses per year to double. Haas still plans to produce and sell the same number of units in Year 4 (base) a) If the new plant is built, what would be the company's new () contribution margin per unit, (m) fixed expenses and (in the new profit formula? Complete the table below. 1) New CM per unit ii) New Fixed expenses 11) New profit formula New Break-even New Year 4 Units Sales Revenue NOT Note: Check figures must be supported to earn credit for grading purposes. a) Assume Haas sells the same units as planned for Year 4 in the new plant, calculate the new margm of safety in units) (ii) dollars and (mpercent Has margin of safety improved or declined? Explain comment i 10 to 30 words. i) MoS units ii) MoS dollars 1) MoS percent Note: Check figures ratut belupported to earn credit for grading purposes. Styles Paragraph b) Calculate the degree ofoperating leverage. Has operating leverage improved or declined from the "base" calculation in 9)? Discuss in 10 to 30 words c) If you were a member of top management, would you have been in favor of constructing the new plant? Explain in 10 to 30 words Attachment Graph: 4) Shipping costs for the last 3 years have been as follows: Year 1. $126,000 Year 2: $115.000 Year 3: $131,500 Project Check Figures. Use to make sure you are heading in the right direction with the project All these answers need to be supported by your work (show work to arrive at these solutions) 3d Formula TC = 8250 +0.490 40 Fixed Costs per year $60,000 5b Variable expense per unit $44 6 Profit for 0 2 units (480,000) 8c Mos % 7.69% 10b) # of units 96,297 11c) # of units 80,000 12a breakeven # of units 45,284 12b MoS units 19.716 Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: 0 0 Variable costs per unit: Manufacturing: Direct materials 22 Direct labor 14 Variable manufacturing overhead 5 Variable selling and administrative 3 Fixed costs per year: Fixed manufacturing overhead $ 270,000 Fixed selling and administrative expenses$210,000 During its first year of operations. Haas produced 60,000 units and sold 60 000 units. During its second year of operations it produced 75.000 units and sold 50,000 units. In its third year Haas produced 40.000 units and sold 65,000 units. The selling price of the company's product is $52 per unit. . t 1 Normal 1 No Spaci... Heading 1 Heading 2 Title Subtitle Styles Paragraph WILUTULOVES Ver 5) Use the variable costing information (given and results) from CONNECT to provide the information required bdow. Express Net Operating Income in a formula like that used on page 196 of your text. Profit=(unit CMXQ) - Fixed Expenses. Remember to SHOW YOUR WORK!!! a) Sales price per unit b) Variable Expense per unit (include S&A!!) c) Contribution margin per unit d) Contribution margin percentratio e) Contribution margin in dollars ) Profit formula NOI = Profit Q- where the first blank is the CM per unit and the second blank is Fixed Expenses Note: Check figures must be supported to earn credit for grading purposes. 6) Complete the table below assuming the indicated number of units were produced and sold. Remember to include S&A variable expenses in your variable expenses. Units produced sold Sales Revenue Variable Expenses Fixed Expenses Total Expenses Profit NOI yn percent ratio e) Contribution margin in dollars f) Profit formula NOI Profit where the first blank is the CMper unit and the second blank is Fixed Expenses Note: Check figures must be supported to earn credit forgrading purposes. 6) Complete the table below assuming the indicated number of units were produced and sold. Remember to include S&A variable expenses in your variable expenses Profit NOI Units Sales Variable Fixed Total produced sold Revenue Expenses Expenses Expenses 0 20,000 40,000 60,000 80,000 Note: Check figures must be supported to earn credit for grading purposes & 5 6 8 9. electric costs to be for the period? $8,250 +(0.49*150,000)= $81,750 EXPECTED ELECTRIC COST FOR THE PERIC 4) Shipping costs for the last 3 years have been as follows: Year 1: $126.000 Year 2: $115.000 Year 3: $131,500 a) Would the total cost of shipping be dependent on the numb units PRODUCED? NUMBER OF UNITS SOLD b) Use the 3 years of shipping expense given above and YOU & Rodi Space hedong Title Styles Paragraph Project Check Figures: Use to make sure you are heading in the right direction with the project All these answers need to be supported by your work (show work to arrive at these solutions) 3d Formula TC = 8250 +0.49 40 Fixed Costs per year $60,000 5b Variable expense per unit $44 6 Profit for 2 units (480,000) 8c Mos % 7.69% 10b) # of units 96,297 11c) # of units 80,000 12a breakeven # of units 45,284 12b MoS units 19,716 Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations Variable costs per unit: Manufacturing: Direct materials $ 22 Direct labor $ 14 Variable manufacturing overhead $ 5 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $270,000 Fixed selling and administrative expenses$ 210,000 During its first year of operations, Haas produced 60,000 units and sold 60.000 units. During its second year of operations it produced 75.000 units and sold 50.000 units. In its third year. Haas produced 40.000 units and sold 65,000 units. The selling price of the company's product is $52 per unit Project 1 (CVP) - Microsoft Word Mailings Review View . Heading 2 Normal I No Spaci... Heading 1 Title Styles Paragraph 7) Review pages 223 and 224from thetextbook Prepare a Cost-VolumeProfit graph for Hans Company a) Use the graph attached; label both the x and y axis using appropriate increments Dollar values should be used for the y axis and number of units for the x axis. b) Plot the Fixed Expense line. Label it c) Plot the Sales Revenue lime and label it d) Plot the Total Expense line and label it e) Indicate the Break-even Point on the graph and label it f) Shade and label the portion of the graph that indicates the company's positive profit. Base Year calculations: In order for Hans Company to consider any alternatives, they must first understand their current or "base" position Break-even, Margin of Safety and Degree of Operating Leverage are 3 criteria that can indicate the company's current situation. Use Haas's anticipated Year 4 information for these "base year" calculations 8) Margin of Safety evaluates the company's position compared to "break-even". Use the information from 6) above and your CONNECT problem to summarize the information in the table below Calculate the Margin of Safety in (a) dollars (b) units and (c) percent for Year 4. Remember, Haas Company produces and sells the same number of units in Year 4 that they SOLD in year 3 Brezovem Base Year 4 Units Sales Revenue NOI 2) Mos dollars b) Mos units c) Mos Note: Check figures mustbesupported to a credit for grading purposes 9) Calculate the Degree of Operating Leverage for Year 4 assuming nothing else changes Mailings Review View . T Normal 1 No Spaci... Heading 1 Heading 2 Title Paragraph Styles Looking at changes: Look at each situation below independently as a change to the "base" position. 10) Changing sales price:The new marketing director believes that Haas Company can sel more units of its product if they lower their sales price by 5% per unit. a) Calculate the new sales price and (11) contribution margin per unit. 1) new sales price 1) CM per unit m) What will the new Profit formula be? b) How many units will they need to sell to make the same operating income (NOI) as originally projected for year 4 (base assumption)? Note: Check figures must be supported to earn credit for grading purposes. 6) IF Haas Company can sell twice as many units times original units) with the decreased sales price, how much operating income will they make? (1) Should they lower the price? Explain your answer 1) Operating income 11) Should they 11) Increase to costs: The production manager is anticipating an increase to labor rates in the commg year such that variable expenses will increase by $1.50. Hint You may want to update the Profit formula for this change to assist in the calculations required here Remember to consider this change to the "base" assumption and disregard your work in 10) a) What will the CM ratio and Break-Even point in units be with the labor increase Note Requirement asks for CM ratio NOT contribution margin in dollars or contribution per unit Project 1 (CVP) - Microsoft Word erences Mailings Review View 11 AA Heading 2 T Normal 11 No Spaci.. Heading 1 Title Subtitle Paragraph Styles b) If they produce and sell the same number of units for Year 4 what will their new Net Operating Income, NOI, be? c) How many will Has need to sell to maintain the same operating come as originally planned for Year 4 Notes Check figure materapported to care credit for grading purposes d) Assume Has Company was to earn a profit of $50,000 for Year with base" assumption of units produced sold and the cost increase discussed her. What sales price (price per unit) should they use to sell their product Paragraph Styles 12) New Plant?The company is considering construction of a new automated manufacturing plant the new plant would slash variable expenses by 30% but would cause fixed expenses per year to double. Haas still plans to produce and sell the same number of units in Year 4 (base) a) If the new plant is built, what would be the company's new () contribution margin per unit, (m) fixed expenses and (in the new profit formula? Complete the table below. 1) New CM per unit ii) New Fixed expenses 11) New profit formula New Break-even New Year 4 Units Sales Revenue NOT Note: Check figures must be supported to earn credit for grading purposes. a) Assume Haas sells the same units as planned for Year 4 in the new plant, calculate the new margm of safety in units) (ii) dollars and (mpercent Has margin of safety improved or declined? Explain comment i 10 to 30 words. i) MoS units ii) MoS dollars 1) MoS percent Note: Check figures ratut belupported to earn credit for grading purposes. Styles Paragraph b) Calculate the degree ofoperating leverage. Has operating leverage improved or declined from the "base" calculation in 9)? Discuss in 10 to 30 words c) If you were a member of top management, would you have been in favor of constructing the new plant? Explain in 10 to 30 words Attachment Graph: 4) Shipping costs for the last 3 years have been as follows: Year 1. $126,000 Year 2: $115.000 Year 3: $131,500 Project Check Figures. Use to make sure you are heading in the right direction with the project All these answers need to be supported by your work (show work to arrive at these solutions) 3d Formula TC = 8250 +0.490 40 Fixed Costs per year $60,000 5b Variable expense per unit $44 6 Profit for 0 2 units (480,000) 8c Mos % 7.69% 10b) # of units 96,297 11c) # of units 80,000 12a breakeven # of units 45,284 12b MoS units 19.716 Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: 0 0 Variable costs per unit: Manufacturing: Direct materials 22 Direct labor 14 Variable manufacturing overhead 5 Variable selling and administrative 3 Fixed costs per year: Fixed manufacturing overhead $ 270,000 Fixed selling and administrative expenses$210,000 During its first year of operations. Haas produced 60,000 units and sold 60 000 units. During its second year of operations it produced 75.000 units and sold 50,000 units. In its third year Haas produced 40.000 units and sold 65,000 units. The selling price of the company's product is $52 per unit