Ryson Incorporated sells a lantern popular with campers for $20 per unit. Variable expenses are 25%...

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Ryson Incorporated sells a lantern popular with campers for $20 per unit. Variable expenses are 25% of sales, and fixed expenses total $427,500 annually. Required: Answer the following in the space provided. Be sure to identify the question # with your response. 1. What is the product's CM per unit? 2. Use the CM per unit to determine the break-even point in units. 3. Ryson estimates that its sales will increase by $95,000 during the coming year due to increase in demand. By how much should net operating income increase? 4. Assume the company sold 40,000 units last year. The sales manager believes that a 3% reduction in the selling price, combined with an $148,000 increase in advertising expenditures, would increase annual unit sales by 30%. Calculate: a) the total net operating income for last year and the sales manager's proposal b) the CM per unit for last year and the sales manager's proposal. Ryson Incorporated sells a lantern popular with campers for $20 per unit. Variable expenses are 25% of sales, and fixed expenses total $427,500 annually. Required: Answer the following in the space provided. Be sure to identify the question # with your response. 1. What is the product's CM per unit? 2. Use the CM per unit to determine the break-even point in units. 3. Ryson estimates that its sales will increase by $95,000 during the coming year due to increase in demand. By how much should net operating income increase? 4. Assume the company sold 40,000 units last year. The sales manager believes that a 3% reduction in the selling price, combined with an $148,000 increase in advertising expenditures, would increase annual unit sales by 30%. Calculate: a) the total net operating income for last year and the sales manager's proposal b) the CM per unit for last year and the sales manager's proposal.

Answer rating: 100% (QA)

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