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 $15 Management is anxious to improve the company's profit performance and has asked for an analysis of a number of items 252 Percentage of Sales Molander Corporation sells a sun umbrella used at resort hotels Data concerning the next month's budget are given below 100 Required: I 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?-Use the CM-ratio to determine your answer Ils 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 meet this target profit figure? 5 Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 12 Page 372

Voltar Compury mandactures and sells a wireless router sienal booster. The company's contribution marein income statement for the most receat jear is grien below Required: I Compute te compans CM atso and watele mpense atio 2 Compate tie congans's becketel porat in bohi unts and ales dollan Ues the equation method CMatio to determint gou anster taket profit feite