Use the contribution margin approach to compute the change in net operating income if the selling price
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Question:
Reference the DATA cells) in your formula below. Format as a number. Always refer to the original data.
Use the Excel ROUNDUP function to obtain whole units or dollars
new operating income: ?
change in operating income: ?
Requirement 14
Use the contribution margin approach to compute the change in net operating income if the selling price per unit increases by $30
per unit and the sales fall by 100 units.
Reference the DATA cells) in your formula below. Format as number.
Use the Excel ROUNDUP function to obtain whole units or dollars
new operating income: ?
change in operating income: ?
Requirement 15
Use the contribution margin approach to compute the change in net operating income if the sales increase by 9% and advertising spending is increased by $8,000.
Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data
Use the Excel ROUNDUP function to obtain whole units or dollars
new operating income: ?
change in operating income: ?
Requirement 16
Use the contribution margin approach to calculate margin of safety in dollars, as a percent and in units.
Reference the DATA cells) in your formula below. Format as a number. Always refer to the original data.
Use the Excel ROUNDUP function to obtain whole units or dollars
margin safety $: ?
margin safety %: ?
margin safety units: ?
Requirement 17
Use the contribution margin approach to calculate operating leverage. What is the estimated percent increase in net income If sales increase 15%? What is the New Operating Income?
Reference the DATA cells) in your formula below. Format as a number. Always refer to the original data.
operating leverage: ?
change in operation income %: ?
new operating income $: ?
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
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