Question 1 - Chapter / X .. ACC2385 Chapter 5 Ju x Sign out X Course Home X Using a Memorized Tr X ! Welcome to flip. X + X C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.... [ * ... gym TR to PR How to make a req... Eligible tuition fees... Sign in to your IRC... M Gmail YouTube Maps G www.google.com Notification Center , Laptop Battery for.. Chapter 4 - Cost-Volume-Profit Analysis i Saved Help Save & Exit Submit Check my work Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable expenses are $10 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: 20 points Sales (23,000 units) $ 460,000 Variable expenses 230,600 Contribution margin 230, 000 Fixed expenses 180, 000 eBook Operating income $ 50,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in sales dollars. 3. Assume this year's total sales increase by $50,000. If the fixed expenses do not change, how much will operating income increase? Assume that the operating results for last year were as in the question data. 4-a. Compute the degree of operating leverage based on last year's sales. 4-b. The president expects sales to increase by 16% next year. Using the degree of operating leverage from last year, what percentage inmeanAn in amarating in we will the arranlian thin inne? Palaidate the dollar ins on in amartin inmama Mc Graw Hill Type here to search O W e ? 9:00 AM qb 13"C Mostly sunny ~ (7 () ENG 2022-06-05e Questioni-Chapter x .3. mSBSChapberSJL x | :' Signout x l a CourseHome x | e UsingaMemolizedT x l ! Welcometoip. x | + V X (- 9 C i ezto.mheducationcomfextfmap/index.htmI?_con:contexternaLbrowser:0&launchUrl:https96253A'36252F%252Fnewconnect.... l9 @ 9 I . * ?J I] 0 gym * TR to PR * How to make a req... * Eligible tuition fees.\" * Sign in to yourlRC... M Email YauTuhe 0 Maps 6 www.google.cam If Notification Center . Laptop Batteryfor.\" Chapter 4 - Cost-Volume-Prot Analysis 0 Saved Help Sana Exit Submit . 3. Assume this year's total sales increase by $50,000. ltthe xed expenses do not change, how much will operating income increase? Assume that the operating results for last year were as in the question data. 4-a. Compute the degree of operating leverage based on last year's sales. 20 points 4-b. The president expects sales to increase by16% next year. Using the degree of operating leverage from last year, what percentage increase in operating income will the company realize this year? Calculate the dollar increase in operating income. aBuuk 5. The sales manager is convinced thata 10% reduction in the selling price, combined with a $32,000 increase in advertising, would increase this year's unit sales by 20%. a. If the sales manageris right, what would be this year's operating income if his ideas are implemented? b. lithe sales manager's ideas are implemented, how much will operating income increase or decrease over last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1 per unit. He thinks thatthis move, combined with some increase in advertising, would increase this year's unit sales by 20%. How much could the president increase this year's advertising expense and still earn the same $50,000 operating income as last year? Complete this question by entering your answers in the tabs beluw. Red 1 Red 2 Red 3 Reg 4A REC] 4B REC] 5A REC] 5B Red 6 What is the product's CM ratio? % Ere: Next ) ere to search Question 1 - Chapter / X .. ACC2385 Chapter 5 Ju x Sign out X Course Home X Using a Memorized Tr X ! Welcome to flip. X + X C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%2530%252F%252Fnewconnect... [ * ... gym TR to PR How to make a req... Eligible tuition fees... Sign in to your IRC. M Gmail YouTube Maps G www.google.com Notification Center , Laptop Battery for.. Chapter 4 - Cost-Volume-Profit Analysis i Saved Help Save & Exit Submit Check my work 1 ILILUZL L13 YOUI 3 WILL JUILS Wy LYN. a. If the sales manager is right, what would be this year's operating income if his ideas are implemented? b. If the sales manager's ideas are implemented, how much will operating income increase or decrease over last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1 per unit. He 20 thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 20%. How much could the points president increase this year's advertising expense and still earn the same $50,000 operating income as last year? eBook Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 5A Req 5B Req 6 What is the product's CM ratio? CM ratio Mc Graw Pre.v. 1 of 3 Next > Hill Type here to search W e 13"C Mostly sunny ~ ( ) ENG 9:01 AM O qb 2022-06-05