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using the data in August, i need part N,O,& P solved. let me know if you have any questions. use this photo to find the

using the data in August, i need part N,O,& P solved. let me know if you have any questions.
image text in transcribed
use this photo to find the calculations for n,o,p image text in transcribed
Use Sensitivity Analysis to answer n through p (each scenario is independent of any other, refer to the original August information for each). n. Refer to the original data in (1) above. Assume The sales manager believes a 10% increase in variable unit selling expenses will increase sales volume. If the sales volume increases by 28.5%, what will be the change in net operating income? Is this a good idea, why or why not? o. Refer to the original data in (1) above. Assume The marketing manager believes that an increase in advertising and better quality materials will increase sales volume by 40%. If this change increases the per unit variable production costs by 15%, and if fixed selling expenses increase by 12%, what will be the new break-even point in dollar sales? Change in Net Income? Is this a good idea, why or why not? p. Refer to the original data in (1) above. Using the degree of operating leverage calculated above (round two decimal places), what would net income be if sales increase by 20%? Verify your calculation using the contribution format income statement. Technology Business Solutions Income Statement For the Month Ended August 2020 Sales Cost of goods sold Adjusted cost of goods sold Gross margin Selling and administrative expenses: Administrative salaries expense Selling expense Utility Expense Depreciation expense Net operating income $334,000 a 17,774 217.774 116,226 116 42,000 44,000 5,500 6,000 97,500 18.726 Technology Business Solutions Income Statement For the Month Ended August 2020 $334,000 217,774 116,226 Sales Cost of goods sold Adjusted cost of goods sold Gross margin Selling and administrative expenses: Administrative salaries expense Selling expense Utility Expense Depreciation expense Net operating income 42,000 44,000 5,500 6,000 97,500 18,726

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