1. What are the total variable costs (rounded to the nearest dollar)?
2. What is the total contribution margin (rounded to the nearest dollar)?
3. What is the contribution margin per unit (rounded to nearest cent)?
4. What are the total fixed costs (rounded to the nearest dollar)?
5. How many units must be sold to break-even (rounded to nearest unit)?
6. What is the break-even point in total sales dollars (rounded to nearest dollar)?
7. Calculate margin of safety (in dollars).
8. Calculate degree of operating leverage (rounded to two decimal points).
9. If the company sells 500 more units in the next quarter than it did in the latest quarter, and fixed costs remain the same, how much will operating income increase by (rounded to the nearest dollar)?
10. Management believes that if they increase advertising expenses by $16,000, this will increase unit sales by 1,500. What is the increase or decrease in operating profit if they decide to increase advertising expenses (rounded to the nearest dollar)?

11. Should they increase advertising expenses?

		Yes, Murwayt Ltd. should increase advertising expenses.
		No, Murwayt Ltd. should not increase advertising expenses.

12. How many units must the store sell to earn a $190,000 target operating income for a quarter (rounded to nearest unit)?

Murwayt Ltd. is a small business that sells scooters in London. A gross margin ncome statement for a recent quarter is presented below. The scooters sell, on average, for $130 each. The company's variable selling expenses are $4.00 per scooter sold. The remaining selling expenses are fixed. /ariable administrative expenses are 2% of sales. Assume all cost of goods sold are rariable costs. Carefully check your answers before submitting. If you get a response incorrect in he beginning of the question, this could result in the remaining parts also being ncorrect. Make sure you carry through all digits and only round your final answers. Negative numbers should be entered with a negative sign, not brackets