Please help me solving the Question Number 5(a), 5(b) and 6.
5) | last year sale units | ||||||
3,000,000/120 | |||||||
25000 | |||||||
unit sales this year 25000*125%= | 31250 | ||||||
Selling price per unit (this year )=120*89%= | 106.8 | ||||||
total fixed expnese = 160,000+62,000= | 222000 | ||||||
Sales (31250*106.8) | 3337500 | ||||||
less Variable cost (31250*60)= | 1875000 | ||||||
Contribution margin | 1462500 | ||||||
less Fixed expenses | 222000 | ||||||
Net operating income | 1240500 | ||||||
b) | decrease in net operating income | 1,340,000-1,240,500 | |||||
99500 | |||||||
% decrease | 99,500/1,340,000 | ||||||
7.43% | |||||||
6) | sales = (31250*120)= | 3750000 | |||||
less variable cost (31250*62.40) | 1950000 | ||||||
Contribution margin | 1800000 | ||||||
contribution = fixed expense +advertising expense + net operating income | |||||||
1,800,000 = 160,000 +x +1,340,000 | |||||||
x = $300,000 | |||||||
the amount by which advertising can be increased is | $300,000 | ||||||
Please help me solving the Question Number 5(a), 5(b) and 6. Feather Friends, Inc., distributes a...
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales $ 3,000,000 Variable expenses 1,500,000 Contribution margin 1,500,000 Fixed expenses 160,000 Net operating income $ 1,340,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point...
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales $ 3,000,000 Variable expenses 1,500,000 Contribution margin 1,500,000 Fixed expenses 160,000 Net operating income $ 1,340,000 5. The sales manager is convinced that a 11% reduction in the selling price, combined with a $60,000 increase in advertising, would increase this year's unit sales...
I just need help on 5 & 6 please. Thank you! Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income $3,240,000 1,620,000 1,620,000 160,000 $ 1,460,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio?...
Just question 5-6 Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales $ 1,040,000 Variable expenses 520,000 Contribution margin 520,000 Fixed expenses 200,000 Net operating income $ 320,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine...
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 3,240,000 1,620,000 1,620,000 160,000 $ 1,460,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point...
I need help with questions 5 - 6. Thank you! Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 3, 120,000 1,560,000 1,560,000 200,000 $ 1,360,000 Required: Answer each question independently based on the original data: 1. What is the product's CM...
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales $ 2,080,000 Variable expenses 1,040,000 Contribution margin 1,040,000 Fixed expenses 160,000 Net operating income $ 880,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point...
Please help. Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 3, 120,000 1,560,000 1,560,000 200,000 $ 1,360,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine...
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 3,120,000 1,560,000 1,560,000 160,000 $ 1,400,000 Assume the president expects this year's sales to increase by 19%. Using the degree of operating leverage from last year, what percentage increase in net operating income...