Question: KGB Inc. distributes a high - quality deck box that sells for $ 2 4 per unit. Variable expenses are $ 1 2 per unit,

KGB Inc. distributes a high-quality deck box that sells for $24 per unit. Variable expenses are $12 per unit, and fixed expenses total $200,000 per year. Its operating resulls for last year were as follows:18Sales (21,000 unit.....Variable$504,000expenses...Contribution252,000margin.Fixed$252,000expenseOperating200,000income,$52,0001Required:1. Compute the company's contribution margin (CM) allo and its break even point in dollar sales 3 marks)2. Assume this year's total sales increase by $50,000. Il the fixed expenses do not erange. how much will operating income increase? (1 mark)3. Assuming that the operating results for last year were as above: (9 manic)Compute the degree of operating leverage based on last year's sales (Round your arou to 2 decimal places).o. Thepresident expects sales to increase by 20% next year. Using the degree of operaig leverage from last year, what percentage increase in opprating inose wil the company realize this year? Calculate the dollar increase in operaing income.

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