Voltar Company manufactures and sells a wireless router signal booster. The company's contribution margin income statement for the most recent year is given below Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income Total $1,200,000 900,000 300,000 240,000 $ 60,000 Per Unit $60 45 Percentage of Sales 100 2 2 Management is anxious to improve the company's profit performance and has asked for an analysis of a number of items. Required: 1. Compute the company's CM ratio and variable expense ratio. 2. Compute the company's break-even point in both units and sales dollars. Use the equation method. 3. Assume that sales increase by $400,000 next year. If cost behaviour patterns remain unchanged, by how much will the company's net operating income increase? 1 CM ratio to determine your answer. 4. Refer to the original data. Assume that next year management wants the company to earn a minimum profit of $90,000. How many units will have to be sold to m target profit figure? 5. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.

Volar Compary manufactures and setls a wireless routter sienal booster. The compary's contribution marein income statement for the most recent year is eiren belo Management is aucious to improve the compary's profit performance and has asked for an analysis of a number of items. Required: 1. Compute the compary's CM ratio and wriable expense ratio 2 Compute the compary's breakeren point in both units and sales dollars Use the equation method. 3. Assume that sales increase by $400,000 nean year. If cost behaniour patterns remain unchanged, by how much will the company's net operatine income increase? CM ratio to determine your answer. 4. Refer to the orieinal data. Assume that next jear mangetment sunts the company to earn a minimum proft of $90,000. How many units will hare to be sold to taret proft feure? 5. Refer to the orieginal data Compote the compary's marein of safety in both dollar and percentage terms