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USING THE DECISION TOOLKIT x 1 Hermander Company, maker of high qually flashlights, has experienced my However, increased competition has led Mo Hernander the president
USING THE DECISION TOOLKIT x 1 Hermander Company, maker of high qually flashlights, has experienced my However, increased competition has led Mo Hernander the president to believe next year to maintain the company's present growth. The campagne following data for the current year. 2016. forse in peepa bap M. Herminden he COST SCHEDULES Variable costs Direct labour pertaight 1.00 Direct materials 00 Variable overhead 300 Variable cost pertlashlight SO Fised costs Manufacturing S 25.000 Selling 40,000 Administrative 2000 Totalfiedot $135.000 S 25.00 Selling price per dashlight Expected 20120,000 flashlights S500,000 Mr. Hernandez has set the sales target for the year 2017 at $550.000 (22.000 flashlights Instructions ignore any income tax considerations.) What is the projected operating income for 2011 What is the contribution margin per unit for 2010 (e) What is the break-even point in units for 2016 (d) Mr. Hernandes believes that to attain the sales target in the year 2017, the company must incur an addition Selling expense of $10,000 for advertising in 2017 with a ing constant. What will be the break even point in sales dollars for 2017 the company spenda additional $10.0001 ( If the company spends the additional $10.000 for advertising the live in dollars equired to equal 2016 operating income
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