Question: 1. at Base
a. Compute Contribution per unit: $s & %
b. Compute Operating Income at Base units
c. Compute Breakeven sales $s & # units
d. Compute Leverage ratio at Base units
2. a. If a new Target income of $120,000 is to be achieved, what # of units must be sold
b. Compute Leverage ratio at Target
3. Operating Income --- What-if scenarios?
a. Improve product performance, add $3.20 variable cost per unit, increase unit sales 20%, increase sell price per unit by 10%
b. Raise variable selling to 12% of sell price per unit, double advertising, sell every 5th unit at no charge, unit sales double
c. Increase sell price by 15%, unit sales decrease 14%
d. Remove features from product, decrease variable cost per unit by $3, unit sales decrease by 25%.
Information related to above question is enclosed below:
Attachment:- 81554_1384392_Ch5HwwithExcel.rar