Answer Happy

Exercise 6-4 (Algo) Computing and Using the CM Ratio [LO6-3] Last month when Holiday Creations, Incorporated, sold 43,000 units, total sales were $172,000, total variable expenses were $137,600, and fixed expenses were $39,200 Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 325 units and total sales by $1,300? (Do not round Intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income

Exercise b-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LUD-4] [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Exercise 6-5 (Algo) Part 1 Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. Percent Per Unit of Sales $ 70 49 $ 21 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget Increases by $9,800, the monthly sales volume Increases by 100 units, and the total monthly sales increase by $7,000? 1-b. Should the advertising budget be increased? Req 1A 100% 70 30x Complete this question by entering your answers in the tabs below. Req 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,800 the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,000? (Do not round intermediate calculations.) Net operating income decreases by $ 2,300

Required Information Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. Percent Per Unit of Sales $ 70 100x 49 70 30% Exercise 6-5 (Algo) Part 2 2-a. Refer to the original data. How much will net operating income Increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $4 per unit and increase unit sales by 25% 2-b. Should the higher-quality components be used? Reg 2A 521 Complete this question by entering your answers in the tabs below. Reg 28 Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $4 per unit and increase unit sales by 25%. Net operating income 2

Exercise 6-6 (Algo) Break-Even Analysis [LO6-5] Mauro Products distributes a single product, a woven basket whose selling price is $14 per unit and whose variable expense is $12 per unit. The company's monthly fixed expense is $3,400. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round Intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round Intermediate calculations.) 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales 3. Break-even point in dollar sales baskets baskets