- 28 Chapter 5 Required 1 How Much Will Act Operating Income Increase Decrease Per Month If The Motyw Budget Increases 1 (49.57 KiB) Viewed 28 times
28 Chapter 5 Required: 1. How much will act operating income increase (decrease) per month if the motyw budget increases by $5.000 and monthly sales increase by $9,000 2 Refer to the original data. How much will be operating income increased if the
company is higher quality components that increase the variable Expo unit and increase unit sales by 10 EXERCISES Locido Pro income Mauro Products distributes a single product, a woven husker whose selling price is si pe EXERCISE 5-6 Break Even Analysis LOS-5 whose variable expense is $12 per unit. The
company's monthly fixed expense is $4.20 Required 1. Calculate the
company's break-even point in unit sales. 2. Calculate the
company's break-even point in dollar sales. 3. Ir the
company's fixed expenses increase by 600, what would become the new point in unit sales? In dollar sales? EXERCISE 5-7 Target Profit Analysis LOS-5 Lin Corporation has a single product whose selling price is $120 per unit and when expense is 580 per unit. The
company's monthly fixed expense is S50,000, Required: 1. Calculate the unit sales eceded to attain a target profit of $10.000 2. Calculate the dollar sales needed to attain a target profit of $15.000 Required 1 What 2 Wha 1 Verit inco EXERCISE Fill in the the other income Aus EXERCISE 5-8 Compute the Margin of Safety LOS-7 Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data cee.com next month's budget appear below: Case 1 Selling price per unit. Variable expense per unit Fixed expense per month Unit sales per month $30 520 $7,500 1,000 2. 3. b. As Required 1. What is the
company's margin of safety? 2. What is the
company's margin of safety as a percentage of its sales? EXERCISE 5-9 Compute and Use the Degree of Operating Leverage LOS- Engberg
Company installs lawn sod in home yards. The
company's most recent monthly tion format income
statement follows: 11 2. 3 Sales Variable expenses Contribution margin Feed expenses Net operating income Amount $80,000 32.000 48,000 38.000 $10,000 Percent of 100% 40% 60% EXERCI Olonga Monthl What is the
company's degree of operating leverage! Required 1 2. Using the degree of operating leverage, estimate the impact on net operating sama Increase in sales 3. Verify your estimate from art (2) above by constructing a new contribution or Fixed men for the
company assuming a 55 increase in sales.