Question: PR 7.41 (Static) CVP Graph; Cost Structure; Operating Leverage (LO 7-2, 7-3, 7-4, 7-8) [The following information applies to the questions displayed below] Athletico Incorporated

 PR 7.41 (Static) CVP Graph; Cost Structure; Operating Leverage (LO 7-2,
7-3, 7-4, 7-8) [The following information applies to the questions displayed below]

PR 7.41 (Static) CVP Graph; Cost Structure; Operating Leverage (LO 7-2, 7-3, 7-4, 7-8) [The following information applies to the questions displayed below] Athletico Incorporated manufactures warm-up suits. The company's projected income for the coming year, based on sales of 160,000 units, is as follows: PR 7-41 (Static) Part 1: Prepare a CVP graph for Athletico Incorporated for the coming year. Required: In completing the following requirements, ignore income taxes. 1. Prepare a CVP graph for Athletico Incorporated for the coming year. Note: Use the line tool to draw a single line (Total Sales, Fixed Expense, Total Expense). This line should only contain the two endpoints. Use the point tool (Break Even Point) to plot the Break Even Point. For your graph to grade correctly, you must enter the exact x and y coordinates for each endpoint. Once all points have been plotted, click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed. To remove a line/point from the graph, click on the line/point and select delete option. Leverage (LU 12,1S,14,1 ) [The following information applies to the questions displayed below.] Athletico Incorporated manufactures warm-up suits. The company's projected income for the coming year, based on sales of 160,000 units, is as follows: PR 7-41 (Static) Part 2: Calculate the firm's break-even point for the year in sales dollars. 2. Calculate the firm's break-even point for the year in sales dollars. 3. What is the company's margin of safety for the year? 4. Compute Athletico's operating leverage factor, based on the budgeted sales volume for the year. 5. Compute Athletico's required sales in dollars in order to earn income of $4,500,000 in the coming year. 6. Show the Athletico's cost structure and indicate the percentage of the Athletico's revenue represented by each item on the income statement

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