Reference no: EM131869931

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