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Word counts are included simply as a guide. I do not count words if your response explains your reasoning clearly, concisely and to the point
Word counts are included simply as a guide. I do not count words if your response explains your reasoning clearly, concisely and to the point Analyze Case A and answer either Question Bor Question C. (Choose A & B OR choose A & C.) Provide a citation from the current text, including page number, for each question. Use your name as the subject of the post. Include all of your answers in your first post. Second post responds to a classmate adding new information to the discussion. Due dates per syllabus This document may not be posted or provide outside of this Blackboard course. Do not search the internet. Use what you learned from the text and resources on BB and Mylab. ANALYZE CASE A To help you to answer each question, prepare a contribution format income statement table with columns for the contribution margin per unit and the contribution ratio, as explained in Course Materials Unit Six Ch 20 in "CVP Analysis for Problem Solving." Fill in as many items as you can. You may not be able to fill in all spaces, but you can use the format to understand the relationships. Prepare a contribution format income statement table for each question. You should have 4 tables in your solution. An example is provided in the first question. Round per-unit S amounts to 4 decimal places. ($0.1234) Round totals to no decimal places. ($123,456) Round percentages to 2 decimal places (11.12%). When possible, make your calculations in one string without rounding intermediate values. 1. Kerchool Flag Company has a per unit variable cost of $10.00 per unit, which is 60% of the selling price. Fixed costs are $100,000. Calculate break even in sales and units using the contribution margin and contribution margin approach and the contribution margin income statement table. No equation approach, that is, do not copy formulas/equations from the text and then substitute in values. There is enough of that in MyLab. Use the table. Contribution Margin Ratio Total Amount (Contribution Contribution Margin per Margin Income Statement) Unit To per unit Net Revenue Less Variable Costs Contribution Margin Less Fixed Costs Operating Income 2. What must Kerchoo! sell in $ and units to earn an operating income of $25,000? Calculate break even in sales and units using the contribution margin and contribution margin approach and the contribution margin income statement table. No equation approach! 3. Based on the original figures in question #1, what would happen to the break even if Kerchool began a promotion that would increase per unit variable costs by 10%? Anticipated sales volume is 17,500 flags. Is the promotion a good idea? Use the contribution margin and contribution margin approach and the contribution margin income statement table. No equation approachlye 4. Based on the original figures in question #1, what happens If Kerchool adds machinery to automate production, whic will increase fixed costs by $30,000 and decrease per unit variable costs 20%? Would you recommend this change? Use the contribution margin and contribution margin approach and the contribution margin income statement table. No equation approach
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