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v AA Aabende iul > Normal Review Problem: CVP Relationships Voltar Company manufactures and sells a specialized cordless telephone for high electromagnetic radiation environments. The

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v AA Aabende iul > Normal Review Problem: CVP Relationships Voltar Company manufactures and sells a specialized cordless telephone for high electromagnetic radiation environments. The company's contribution format income statement for the most recent year is given below Page 215 Total Per Unit Percent of Sales Sales (20.000 units) $1,200,000 $60 100% Variable expenses 900.000 45 Contribution margin Fred expenses 21 300.000 $15 240.000 Net operating income $60.000 Management is anxious to increase the company's goodie and has asked for an atalysis of a number of items Required: Compute the editpony CM ratio and variable expense rate 2. Compute the company's break even point in bith unit sales and dollars. Use the equation method 3. Assume that an increase in unitate total sales to increase by 5400,000 ext year. If cost be pateres mais unchanged how much will the company's operating some increase the ratio to compute your answer. Refer to the original data. Asume that to management and the company to carn a profit of at least 50.00. Hoe mais will have to be sold to cart this card 5. Reet the original data Crite the comms margnoty in both dollar and percentage for a compute the compani's degree of operating edge at the present of als Assume that through a more intendforth the countlesince year. By that percentage wouldpect operating the Use the degree Corting cart Very sort this posing a new honorinestamenting a chiunities Refer to the original data in attest to increases and its temet is ning the use of her life. The nigher quality cold increase the sixt i fus manchen came quality in padech sh (United States

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