Marjolein & Co

managerial accounting

questions 1-5

PROBLEMS 6-18 Basic CVP Analysis olein & Co. makes a designer alarm clock that sells for $20 per unit. Variable costs are $6 per umit. (LOI,LO3, LO4, LOS, LO6, LO8) CHECK FIGURE fixed costs total $210,000 per year. Required: Answer the following independent questions: 1. What is the product's CM ratio? Use the CM ratio to determine the break-even point in sales dollars. e to an increase in demand, the company estimates that sales will increase by $200,000 during the next year. By how much should net operating income (or net operating loss) change, assuming that fixed costs do not change? 4. Assume that the operating results for last year were: 224,000 b6 21000 ,0 Contribution margin Net operating income ...14,000