Question: Question - 3: Junior Bodway, Inc., has provided the following budgeted data: [Marks: 10) Sales ............ 10,000 units Selling price $60 per unit Variable expense

Question - 3: Junior Bodway, Inc., has provided the following budgeted

Question - 3: Junior Bodway, Inc., has provided the following budgeted data: [Marks: 10) Sales ............ 10,000 units Selling price $60 per unit Variable expense $40 per unit Fixed expense $2,00,000 Requirements: a) Calculate CMR and VCR. b) Prepare a Contribution formal Income Statement. c) What is the company's break-even point in unit and sales dollars? d) What is the CM at Break even point? e) Calculate the Margin of Safety (MS) and MSR. f) Calculate the Expected Sales in unit for target profit of $2,00,000. g) If the company sales increased by $ 1,00,000 and Advertising expenditure is $ 10,000 then how much net operating income will be increased? h) Calculate the DOL and if sales increased by 20% then how much% of profit will be increased

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