Eminem (pronounced M&M because of his real name Marshall Mathers) wants to continue rapping but wants...

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Eminem (pronounced M&M because of his real name Marshall Mathers) wants to continue rapping but wants to make more money. (Completely fictional from this point on) Eminem decides to sell three items in 2021 - a new rap album, Eminem (instead of M&M) chocolates, and a Slim Shady action figure. In January 2021, the following information is given: Rap Album Eminem Chocolates Slim Shady Company Totals $1,000,000 Sales $500,000 $200,000 $300,000 Variable Costs $250,000 $120,000 $210,000 $580,000 Contrib. Margin $250,000 $80,000 $90,000 $420,000 $294,000 Fixed Costs a. Determine the break-even points for Eminem's company expressed as sales dollars of his new album, chocolates, and Slim Shady action figures. Feel free to round however you want. (7 points) b. Calculate the margin of safety in dollars for each of the album, chocolates, and Slim Shadys. Do not worry about carrythrough errors, but only if you show your work. (3 points) c. What is the degree of operating leverage at the company? (2 points) What is the company's net income if sales were to increase by 10%? (3 points) HINT: Use the shortcut if you can, to save time. Feel free to round however you want. d. Is Eminem's sales mix appropriate? Why or why not? (3 points) Eminem (pronounced M&M because of his real name Marshall Mathers) wants to continue rapping but wants to make more money. (Completely fictional from this point on) Eminem decides to sell three items in 2021 - a new rap album, Eminem (instead of M&M) chocolates, and a Slim Shady action figure. In January 2021, the following information is given: Rap Album Eminem Chocolates Slim Shady Company Totals $1,000,000 Sales $500,000 $200,000 $300,000 Variable Costs $250,000 $120,000 $210,000 $580,000 Contrib. Margin $250,000 $80,000 $90,000 $420,000 $294,000 Fixed Costs a. Determine the break-even points for Eminem's company expressed as sales dollars of his new album, chocolates, and Slim Shady action figures. Feel free to round however you want. (7 points) b. Calculate the margin of safety in dollars for each of the album, chocolates, and Slim Shadys. Do not worry about carrythrough errors, but only if you show your work. (3 points) c. What is the degree of operating leverage at the company? (2 points) What is the company's net income if sales were to increase by 10%? (3 points) HINT: Use the shortcut if you can, to save time. Feel free to round however you want. d. Is Eminem's sales mix appropriate? Why or why not? (3 points)

Answer rating: 100% (QA)

In the given question number of units sold for each product is not given So we can assume that 100 u... View the full answer