Kowkeela has recently opened The Cooker Shop, a store that specializes in one type of cooker....

  
 

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Kowkeela has recently opened The Cooker Shop, a store that specializes in one type of cooker. Kowkeela has just received a degree in business and she is anxious to apply the principles she has learned to her business. In time, she hopes to open a chain of cooker shops. As a first step, she has prepared the following analysis for her new store: Sales price per cooker . Variable expenses per cooker.... Fixed expenses per year: $40 $19 Building rental.. -- Equipment depreciation -- - Selling.. $13000 $5600 $18600 Administrative. $16000 During the first year, the store sold only 3200 cookers. Using the table below, prepare a contribution approach income statement. -help Fill in the yellow fields with the right values. Details numeric response text response numeric response text response numeric response Contribution margin numeric response text response numeric response text response (b) [1 mark] In relation to (a), Kowkeela's degree of operating leverage (in two decimal places) is (c) [1 mark] In relation to (a), Kowkeela is confident that with a more intense sales effort and with a more creative advertising program she can increase sales by 60% next year. The expected percentage increase in net operating income (in 2 decimal places) is (only input the value not the % symbol) (d) [1 mark] Refer to the original data, the number of cookers to be sold each year to break even is (e) [1 mark] Refer to the original data, Kowkeela has decided that she must earn at least $16700 the first year to justify her time and effort. The number of cookers to be sold to reach this target profit is (f) [1 mark] Refer to the original data, Kowkeela now has two salespersons working in the store-one full time and one part time. It will cost her an additional $7600 per year to convert the part-time position to a full-time position. Kowkeela believes that the change would bring in an additional 675 unit sales each year. If this change is made, the new net income will be $ Kowkeela has recently opened The Cooker Shop, a store that specializes in one type of cooker. Kowkeela has just received a degree in business and she is anxious to apply the principles she has learned to her business. In time, she hopes to open a chain of cooker shops. As a first step, she has prepared the following analysis for her new store: Sales price per cooker . Variable expenses per cooker.... Fixed expenses per year: $40 $19 Building rental.. -- Equipment depreciation -- - Selling.. $13000 $5600 $18600 Administrative. $16000 During the first year, the store sold only 3200 cookers. Using the table below, prepare a contribution approach income statement. -help Fill in the yellow fields with the right values. Details numeric response text response numeric response text response numeric response Contribution margin numeric response text response numeric response text response (b) [1 mark] In relation to (a), Kowkeela's degree of operating leverage (in two decimal places) is (c) [1 mark] In relation to (a), Kowkeela is confident that with a more intense sales effort and with a more creative advertising program she can increase sales by 60% next year. The expected percentage increase in net operating income (in 2 decimal places) is (only input the value not the % symbol) (d) [1 mark] Refer to the original data, the number of cookers to be sold each year to break even is (e) [1 mark] Refer to the original data, Kowkeela has decided that she must earn at least $16700 the first year to justify her time and effort. The number of cookers to be sold to reach this target profit is (f) [1 mark] Refer to the original data, Kowkeela now has two salespersons working in the store-one full time and one part time. It will cost her an additional $7600 per year to convert the part-time position to a full-time position. Kowkeela believes that the change would bring in an additional 675 unit sales each year. If this change is made, the new net income will be $

Answer rating: 100% (QA)

a Income Statement Sales 403200 128000 lessVariable costs 193200 60800 Contribution Margin 67200 Les... View the full answer