Frieden Company's contribution format income statement for the most recent month is given below: Sales (45,eee units) Va

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Frieden Company S Contribution Format Income Statement For The Most Recent Month Is Given Below Sales 45 Eee Units Va 1 (36.86 KiB) Viewed 4 times

Frieden Company S Contribution Format Income Statement For The Most Recent Month Is Given Below Sales 45 Eee Units Va 2 (27.82 KiB) Viewed 4 times

Frieden Company S Contribution Format Income Statement For The Most Recent Month Is Given Below Sales 45 Eee Units Va 3 (18.85 KiB) Viewed 4 times

Frieden Company S Contribution Format Income Statement For The Most Recent Month Is Given Below Sales 45 Eee Units Va 4 (30.24 KiB) Viewed 4 times

Frieden Company's contribution format income statement for the most recent month is given below: Sales (45,eee units) Variable expenses Contribution margin Fixed expenses Net operating income $1,215,000 850,500 364,500 291,600 72,900 $ The industry in which Frieden Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity as is studying ways of improving profits. Required: 1. New equipment has come on the market that would allow Frieden Company to automate a portion of its operations. Variable expenses would be reduced by $8.10 per unit. However, fixed expenses would increase to a total of $656,100 each month. Prepai two contribution format income statements: one showing present operations, and one showing how operations would appear if th new equipment were purchased. (Input all amounts as positive values except losses which should be indicated by minus sign.. Round your "Per unit" answers to 2 decimal places.) Menanni Proposed
90 Total points awarded Help Exit takes place and the selling price per skateboard remains constant, what will be the new CM ratio and the new break- Hipony caure a voule experises messe by overal yea even point in skateboards? (Do not round intermediate calculations.) 2 20 awarded red ok Contribution margin Unit sales to break-even point 32 54,000 Number of skateboards % 3. Refer to the data in Requirement (2) above. If the expected change in variable costs takes place, how many skateboards will have to be sold next year to earn the same net operating income, $162,000, as in the most recent year? (Do not round intermediate calculations.) 675,000 skateboards
b-2. Compute the degree of operating leverage. (Do not round Intermediate calculations.) Degree of operating leverage
b-1. Assume that the new plant is constructed and that next year the company manufactures and sells the same number of skateboards as sold in the most recent year. Prepare a contribution format income statement. (Do not round intermediate calculations.) Contribution Income Statement