Question: Please explain in simple to understand terms (it's the end of the semester and my brain hurts) im not sure which additional info is needed.
Please explain in simple to understand terms (it's the end of the semester and my brain hurts)


5. Assume that, you are in the position of management accountant in Realm Inc. and the management seeks an explanation from you regarding the disparity among the comparative profit data of the sensitivity analysis of the two divisions. How do you explain this difference? (Write your answer in the Explanation box.) ASSUMPTIONS Product: Strike and Run: Revenue per unit Total Variable Costs of Goods Sold Total Fixed Costs of Goods Sold Total Variable Selling and Administration Expenses Total Fixed Selling and Administration Expenses Denver $25 $50,000 $80,000 $20,000 $30,000 El Paso $25 $130,000 $0 $20,000 $30,000 0,000 Quarterly volume of units sold in the fourth quarter 2019 20,000 20,000 Projected Contribution Margin based Income Statement For Fourth quarter 2019 Sales Total Variable costs Contribution margin Total Fixed costs Net income Denver $ $500,000 $70,000 $430,000 $110,000 $320,000 San Antonio Answer check $500,000 Correct $150,000 Correct $350,000 Correct $30,000 Correct $320,000 Correct 3 Variable Cost per unit Contribution Margin per unit Break Even units Break Even sales Margin of Safety percentage Operating Leverage $3.50 $21.50 5,117 $127,925 74% 1.34 $7.50 Correct $17.50 Correct 1,715 Correct $42,875 Correct 91.43% Correct 1.09 Correct 4 Sensitivity Analyis Conservative scenario: Sales decrease by 30% than the projected sales -40% Net Income under conservative scenario: $148,000 $180,000 Correct Optimistic scenario: Sales increase by 30% than the projected sales 40% Net Income under optimistic scenario: $492,000 $460,000 Correct Explanation
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