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very urgent Question 3 (10 points) Saved Mary Bell Company sold 10,000 units last year with the following results: Sales $ 820,000 Variable expenses 410.000
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Question 3 (10 points) Saved Mary Bell Company sold 10,000 units last year with the following results: Sales $ 820,000 Variable expenses 410.000 Contribution margin 410,000 Fixed expenses 300.000 Operating income $ 110,000 Required: 1. Calculate the break-even sales in dollars. (2 marks) 2. Calculate the margin of safety in dollars. (2 marks) 3. Calculate the company's degree of operating leverage. Round your answer to one decimal place. (2 marks) 4. Use the operating leverage calculated in part 3 to calculate the percentage increase in operating income if sales increase by 15% (1 mark) 5. Prepare an incremental analysis to calculate the dollar impact on operating income of having a $80,000 advertising campaign to increase sales by 20% Should the company proceed with this course of action? Why Step by Step Solution
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