Please answer the following question. Analysis needed with explanation.
Use in-text citation and reference page if necessary in APA format. Answers should be must be plagiarism free.
Zaldor Corporation sells a specialized speaker and has the following information for the current year:
Required:
Calculate the variable expense ratio
Calculate the contribution margin ratio
Calculate break even sales in units
Calculate break even sales in dollars
How many units must be sold to make a profit of $250,000?
Management is considering increasing the quality of its units by spending $3 more per unit in variable costs and adding a quality inspector for an additional $40,000 annual fixed cost. Management believes this change will increase unit sales by 20% at the same price.
Calculate the new profit or loss if the changes are implemented.
Would you recommend management make the changes? Why or why not?
You should use an Excel spreadsheet for your answers.