question 1

Karlik Enterprises distributes a single product whose selling price is $16.50 and whose variable expense is $10.10 per unit. The companys monthly fixed expense is $21,760.

Required:

2. Calculate the companys break-even point in unit sales.

Question 2

Selling price $ 70 100%

Variable expenses 49 70%

Contribution margin $ 21 30%

Fixed expenses are $74,000 per month and the company is selling 4,400 units per month.

1-a. The marketing manager argues that a $9,800 increase in the monthly advertising budget would increase monthly sales by $24,000. Calculate the increase or decrease in net operating income.

1-b. Should the advertising budget be increased?

Yes

No

question 3

2-a. Refer to the original data. Management is considering using higher-quality components that would increase the variable expense by $4 per unit. The marketing manager believes that the higher-quality product would increase sales by 25% per month. Calculate the change in total contribution margin.

2-b. Should the higher-quality components be used?

Yes

No

question 4

Lin Corporation has a single product whose selling price is $135 and whose variable expense is $54 per unit. The companys monthly fixed expense is $40,000.

1. Using the equation method, determine for the unit sales that are required to earn a target profit of $8,600.

question 5

2. Using the formula method, determine for the unit sales that are required to earn a target profit of $9,800. (Round your answer to the nearest whole number.)

The foowing infonmation applies to the questions dsplayed Delow Data for Hermann Corporation are shown below Karik Enterprises distribules a single product whose seling price is $16.50 and whose variable expense is $10.10 per unit The company's monthly foxed expense is $21,760. Required: 2. Calculate the company's break-even point in unit sales Fixed expenses are $74,000 per month and the company is selling 4400 units per month 1-a. The marketing manager argues that a $9,800 increase in the monthly advertising budgot would increase monthly sales by $24,000. Calculate the increase or decroase in net operating income. 1-b. Should the advertising budget be increased? Required: 1. Using the equation methad, determine for the unit sales that are required to earn a target profit of $8,600 3. 2-a. Reler to the oniginal data. Management is considering using higher-quality components that would increase the variable expense by S4 per unit. The marketing manager believes that the higher-quality product would increase sales by 25% per month. Calculate the change in total contrbution margin. 2. Using the formula method, determine for the unit salos that are required to oam a target profit of $9,800. (Round your answer to the nearest whole number)