c$.$ If sales increased by $\backslash (10\backslash \%\backslash )$ in the third year, what percentage growth in profit can the company expect?

Percentage growth in profit

d$.$ What is the predicted operating profit in year $3?6.$ Assume that Taylor is considering raising the price per serving by $\backslash (20\backslash \%\backslash )$ but expects a corresponding drop in demand. How much would profit increase or decrease compared to the starting profit of $\backslash (\backslash$$ $36,000\backslash )?$

Answer is complete but not entirely correct. $4.$ Perform a "what if$"$ analysis to see how operating results will change if sales increase by $\backslash (12\backslash \%\backslash )$ during the second year of operations.

a$.$ What is the new net operating income?

Net operating income

b$.$ What is the new degree of operating leverage?

Degree of operating leverage

c$.$ If sales increased by $\backslash (10\backslash \%\backslash )$ in the third year, what percentage growth in profit can the company expect?

Percentage growth in profit

$\backslash \%7.$ If Bene Petit wants to increase net operating income to $\backslash (\backslash$$ $121,400\backslash )$ by changing only the selling price per serving, what should the new price be$?$ Answer is complete but not entirely correct. These questions relate to the Integrated Analytics Case: Bene Petit. Select the appropriate eBook link to open the Case Overview, Case Background, and Part $3$: Managerial Decision Making.

The following table summarizes the operating results for Bene Petit's first year of operations:Bene Petit First Year Operating Data:Single $(1$ serving$)$Dual $(2$ servings$)$Family $(4$ servings$)$

Additional information about selling prices, variable costs, and fixed costs is summarized below:

$-$ The average sales price for customer meals is $\backslash (\backslash$$ $5\backslash )$ per serving.

$-$ The average direct materials $($ingredients$)$ cost of customer meals is $\backslash (\backslash$$ $1\backslash )$ per serving.

$-$ Direct labor costs average $\backslash (\backslash$$ $0\mathrm{.}75\backslash )$ per customer meal.

$-$ Variable manufacturing overhead costs are applied at a rate equal to $\backslash (60\backslash \%\backslash )$ of direct labor.

$-$ The delivery expense for customer meals is $\backslash (\backslash$$ $2\backslash )$ per customer order.

$-$ The incremental cost of producing the donated meals is $\backslash (\backslash$$ $1\mathrm{.}25\backslash )$ per meal.

$-$ The delivery expense for donated meals is $\backslash (\backslash$$ $125\backslash )$ per delivery to community partners.

$-$ The following fixed costs are allocated to customer meals based on total sales revenue:

$-$ Fixed manufacturing overhead costs are $\backslash$$$75,000$ per year.

$-$ Fixed selling expenses are $\backslash$$$29,000$ per year.

$-$ Fixed administrative expenses are $\backslash$$$40,000$ per year.

The attached excel file shows a contribution margin income statement based on these starting assumptions.

You should return to this starting spreadsheet for each part of the case below.