help with Problem E

19 20 b)Calculate the breakeven point in units. 489 units 21 22 ) Calculate the Sales dollars required to achieve the target profit. $ 1,244,575 Sales $ 23 24 d) Calculate the Degree of Operating Leverage. 6.72 25 26 e) Determine the impact a 5% sales volume increase will have on Net Income. 27 28 Degree of Operating Leverage 6.72 Old Net Income cell reference 29 Label Net Income Change cell reference 30 % Change to Net Income formula New Net Income formula 31 Old Net Income cell reference 32 Change to Net Income formula 33 1 A B D E GESWAN Co. manufactures kayaks. The following information relates to the production of one kayak. 2 Direct Materials $375 3 Finishing kit (seat, rudder, ropes, etc.) $170 4 Labor $420 s selling and administrative expenses --variable $400 16 Selling and administrative expenses --fixed $119,700 7 Manufacturing overhead--fixed $240,000 8 Selling price per unit $2,100 9 Units Sold 575 10 Profit desired per kayak per kayak per kayak per kayak per year per year per kayak units 100