Net sales

Direct materials

Direct labour

Manufacturing overhead$-$variable

Manufacturing overhead$-$fixed

Ivanhoe Corporation sells a single product for $$40.$ Its management estimates the following revenues and costs for the year $2022$:

$$430,000$

$77,400$

$51,600$

$17,200$

$25,800$

Selling expenses$-$variable

Selling expenses$-$fixed

Administrative expenses$-$variable

Administrative expenses$-$fixed

$$17,200$

$17,200$

$8,600$

$8,600$

Assuming fixed costs and net sales are spread evenly throughout the year, determine Ivanhoe's monthly break$-$even point in units

and dollars. $($Round answers to O decimal places, e$.$g$.5,275.)$

Monthly break$-$even in units

Monthly break$-$even in dollars

units

$

Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual operating income. $($Round answers to $0$

decimal places, e$.$g$.15$ or $15\%.)$

Contribution margin ratio

Annual margin of safety ratio

Annual operating income

$\%$

$\%$

$

Question Part Score

$--/3$

Determine the percentage increase in annual operating income if Ivanhoe Corporation increases its selling price by $16\%$ and all

other factors $($including demand$)$ remain constant. $($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}25\%.)$

Percent increase in profit

$\%$

Assume the price remains at $$40$ per unit and variable costs remain the same per unit, but fixed costs increase by $16\%$ annually.

Calculate the percentage increase in unit sales required to achieve the same level of annual operating income calculated in part

second part. $($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}25\%.)$

Percent increase in unit sales

$\%$

Question Part Score

$--/1$

Determine the sales required to earn an operating income of $$309,600$ after tax. Ivanhoe Corporation's income tax rate is $50\%.$

Sales required to earn an operating income of $$309,600$

$