3. Xander has an exclusive deal with Elite Spa and Casino to sell handbags. The average selling price is $450 per bag. Average variable costs (purchase price of bags plus freight costs and selling expenses) amounts to $190 per bag. Xander's fixed costs equal $1,691,000 per year.

Do not enter dollar signs or commas in the input boxes. Round all answers up to the nearest whole unit. Calculate the number of units needed to: Break-even: Answer Earn $207,000 operating profit: Answer Earn operating profit equal to 28% of total sales: Answer

4. Dumbledore Corporation forecasts that next year it can sell 30,000 units of its family-sized ready-to-eat meals for $840,000. The expected contribution margin ratio is 45%. Fixed costs are estimated to be $374,000.

Do not enter dollar signs or commas in the input boxes. a) What is the selling price per unit? Round your answer to 2 decimal places. Selling Price: $Answer b) Calculate the contribution margin if 38,000 units are produced and sold. Round your answer to the nearest whole number. Contribution Margin: $Answer c) Calculate the contribution margin per unit. Round your answer to 2 decimal places. CM per unit: $Answer d) If the company decides to sell its products in the open market, determine the amount of units required to break-even. Round up to the nearest whole unit. Break-Even Units: Answer e) Determine the operating profit if 32,000 units are produced and sold. Round your answer to the nearest whole number. Operating Income: $Answer f) Determine the amount of revenue that needs to be generated to yield an operating profit of $105,000. Round your answer to the nearest whole number. Revenue: $Answer

5. EJE Sardines Processing manufactures and sells canned sardines to restaurants. Variable cost per can amounts to $11 and the selling price of each can is $24. Total annual fixed costs amount to $8,608,889. Sales are estimated to amount to 1,490,000 cans of sardines.

Do not enter dollar signs or commas in the input boxes. Round dollar answers to the nearest whole number and round BE units up to the nearest whole number, unless otherwise indicated. a) Calculate the following values. Gross Sales: $Answer Total Variable Costs: $Answer Contribution Margin: $Answer Operating Profit: $Answer b) If the company sells according to their estimates, what is the degree of operating leverage? The break-even point (in units)? Round the degree of operating leverage to 2 decimal places. Degree of operating leverage: Answer Break-even Point (units): Answer c) If the company increases the sales volume (cans) by 35%, by what percentage will operating profit increase? By what dollar amount will operating income increase? Use the degree of operating leverage. Round the percentage increase to 2 decimal places. Percentage Increase: Answer% Dollar Increase: $Answer d) If the company spends $34,000 as additional advertising expense (fixed cost), sales volume will increase by 5%. Determine the new operating leverage and the new break-even point in units. Round the degree of operating leverage to 2 decimal places. Degree of operating leverage: Answer Break-even point (units): Answer

Answer rating: 100% (QA)

Xanders Handbag Sales BreakEven Calculation Contribution Margin per unit Selling Price Variable Cost... View the full answer