Question: Question 2 24 points Question 2 Refer again to the original data of Relax Company for the year ended on December 11, 2018 Total 2.400.000

Question 2 24 points Question 2 Refer again to the original data of Relax Company for the year ended on December 11, 2018 Total 2.400.000 1.000.000 600,000 Less variable costs Contribution margin Less Feed Costs Net Operating income 250,000 350,000 During 2019. company's selling price per unit and variable cost per unit has been 560 and 540 respectively, Calculate: A. Assume that in upcoming year of 2020, company management wants to earn a minimum profit of $150.000, how many units will have to be so by the company to get this target profit? C b. B. Compute the company's degree of operating leverage at the current sales level. What the answer means? 18 marks) C. The management is considering using the high quality material for the product. This will increase the variable cost per unit by ss but the use of high quality materials could increase the sales by 25 of the current sales volume. Prepare a proposed contribution format income statement for the year 2019 and would you suggest that changes be made? maris) TTTT Paragraph Al 3 - E - T

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Question 2 124 points) Refer again to the original data of Relax Company for the year ended on December 31, 2019: Totals Sales Less variable costs Contribution margin Less Fixed Costs 2,400,000...

ACCT 210 Cost-Volume-Profit&Incr emental Analysis Case Study Class Section Time:0 10345 Please staple your pages togethert (1/2 point Name Name This case study may be completed individually or with a...

I need help on questions 2 & 3 FORD MOTOR COMPANY QUESTION One (20 points): (see page 103) What is Net Income or (loss) for the year ended December 31, 2020? Net Income is ($1,276 million) QUESTION...

Please refer to my attached question papers. I got total 5 pages below. Thanks in advance . SECTION A : ANSWER ALL QUESTIONS (TOTAL 40 MARKS] ZKA Co. is evaluating an investment proposal to...

Mastery Problem: Differential Analysis and Product Pricing WoolCorp WooCorp buys sheep wool from farmers. The company began operations in Sy of this year, and is making decisions on product...

I need help with #1-5. Please refer to Amazons 2020 Annual Report. Thank You! Name of company chosen: Refer to the notes to the financial statements. The first note, "Summary of Significant Ac-...

GENERAL INSTRUCTION : For problem solving, round off your answers to nearest peso. Answers should have NO peso sign. Example : 2,487,159 1. The SYD method of depreciation is being used for a machine...

Fill in the blanks: (a) The product of a reaction between a Lewis acid and a Lewis base is called ________. (b) The bond between a Lewis acid and a Lewis base is called ________ or _______. (c)...

For a population with a proportion equal to 0.30, calculate the standard error of the proportion for the following sample sizes: a. 50 b. 100 c. 150

11 a Write each of these numbers as a product of prime numbers. i 15 ii 15 iii 28 iv 28 v 36 vi 36 b What do you notice about your answers to i and ii, iii and iv, v and vi? c If 96 = 25 3, show how...

1. The International Labour Organization. The International Labour Organization (ILO) has established labor standards for 150 countries represented by the organization. Locate the Web site for the...

9. Assess the strategy of Wal-Mart in China where the company has recognized unions in all 62 stores, to its strategy in the United States, which is to combat any type of union representation.

5. Although multinational corporations seem to be growing in size and influence, what must occur before transnational collective bargaining can be effectively carried out?