Solution-What would be the effect on the sweet potato line

What would be the effect on the sweet potato line

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Reference no: EM132662298

Problem 1: What is the contribution Margin for the new line of sweet potato chips?

Problem 2: What is the breakeven amount for the sweet potato chips in dollars and units?

Problem 3: What is the margin of safety for the sweet potato chips in both dollars and units?

Problem 4: How much would operating income increase if sales increased by 15%?

Problem 5: What would be the effect on the sweet potato line's net income if the company increased sales commissions as in Scott's first alternative?

Problem 6: What would be the effect on the sweet potato line's net income if the company increased advertising expense as in Scott's second alternative

Roberts Chips Co.
Sweet Potato Chip Division
Operating Results for Quarter 3

Revenues Cost of Goods Sold:		$ 1,947,563
DM	$ 473,025
DL	$ 151,725
MOH	$ 323,531	948,281
Gross Margin		999,281
Selling and Admin		$ 740,000
Division Operating Income		259,281
Units sold		325,000

Reference no: EM132662298

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What would be the effect on the sweet potato line

Reference no: EM132662298

Reference no: EM132662298

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