Answer Happy

(D) What is the variable product cost per unit? (E) What is the breakeven point in units? Sales dollars? (F) Assume original facts and sales are currently 10,500 units. Compute the margin of safety in dollars and units. (G) Assume original facts and sales are currently 10,500 units. Compute the amount of operating leverage. (H) Why is the breakeven point an important concept in management accounting? That is, what information does it provide managers? (You may wish to look at a variety of sources of information (e.g., online) to find suitable answers for this question. If so, be certain to include appropriate citations.) (1) How many units must the company sell to earn a target income of $116,000? (J) Henry Payne, marketing manager, proposed the company increase the advertising budget by $40,000. He suggests this would increase sales by 1,500 units. Should the advertising budget be increased? You do not need to prepare an income statement.
(D) What is the variable product cost per unit? (E) What is the breakeven point in units? Sales dollars? (F) Assume original facts and sales are currently 10,500 units. Compute the margin of safety in dollars and units. (G) Assume original facts and sales are currently 10,500 units. Compute the amount of operating leverage. (H) Why is the breakeven point an important concept in management accounting? That is, what information does it provide managers? (You may wish to look at a variety of sources of information (e.g., online) to find suitable answers for this question. If so, be certain to include appropriate citations.) (1) How many units must the company sell to earn a target income of $116,000? (J) Henry Payne, marketing manager, proposed the company increase the advertising budget by $40,000. He suggests this would increase sales by 1,500 units. Should the advertising budget be increased? You do not need to prepare an income statement.