1.) what is the break-even in dollar sales?2.) what is the margin of safety percentage?3.) what is the degree of operating leverage ? (Round your answer to 2 decimal places.)4.) using the degree of operating leverage and without changing anything, calculate the percentage change in net operating income if unit sales increase by 20% ? %24%24uestion 2 - GO! - CH 05 - Conezto.mheducation.com/ext/map/index.html?_con%3Dcon&external_browser%3D0&launchUrl%=https%253A%252F%252Fbb.nsuok.SavedGO! - CH 05 GChapter 5: Applying Excel (Algo)The Chapter 5 Form worksheet is to be used to create your own worksheet version of the Review2.text.Part 2 of 2Chapter 5: Applying Excel: Exercise (Part 2 of 2) (Algo)5.polnts2. Change all of the numbers in the data area of your worksheet so that it looks like this:B.C.eBookA.1.Chapter 5: Applying Excel2PrintReferencesData50,000 units4.Unit sales5.Selling price per unit9.Variable expenses per unit7.Fixed expenses30 per unit21 per unit$ 427.500M.Graw< Prey2.Type here to search6 五 0

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1.) what is the break-even in dollar sales? 2.) what is the margin of safety percentage? 3.) what is the degree of operating leverage ? (Round your answer to 2 decimal pl

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $15 Direct labor 10 Factory overhead $451,600 Selling expenses: Sales salaries and commissions 93,800 Advertising 31,800 Travel 7,100 Miscellaneous selling expense 7,800 Administrative expenses: Office and officers' salaries 91,700 Supplies 11,300 Miscellaneous administrative expense 10,500 Total $705,600 $42 It is expected that 10,800 units will be sold at a price of $140 a unit. Maximum sales within…
1 We learned how to use the Scenario Manager to view the results of a model when multiple 2 assumptions are changed. Using the Assumptions below, build the pro forma (in yellow) model and then run the 3 Scenarios using the the inputs in green below the pro forma. Your answer should show the After Tax Profits per Year (Summary range should be B25:F25). 4 5 6 Assumption 7 Tax Rate 8 Unit Sales 9 Sales Growth 10 Year 1 Price 11 Year 1 Cost 12 Cost Growth Rate 13 Price Growth Rate 14 15 16 17 Unit Sales 18 unit price 19 unit cost 20 21 Revenues 22 Costs 23 Before Tax Profits 24 Tax 25 After Tax Profits 26 27 28 Scenario 29 Accelerated Growth 30 Sustainable Growth 31 Moderate Growth 32 Moderate Decline 33 Accelerated Decline 34 35 Range name taxes Year1 units salesgrowth Year1 price Year1 cost costgrowth pricegrowth 1 200,000 $75.00 $60.00 $0 $0 Unit Sales 300,000 250,000 225,000 180,000 165,000 18.0% 200,000 3.5% $75.00 $60.00 2 3.0% 5.0% $0 $0 Year 3 $0 $0 Sales Growth Cost Growth 10.0%…
The Ashwood Company has a long-term debt ratio of 0.50 and a current ratio of 1.60. Current liabilities are $970, sales are $5,175, profit margin is 9.80 percent, and ROE is 17.60 percent. What is the amount of the firm's net fixed assets? Hint: This is another complex problem that requires a number of steps. Remember that CA + NFA=TA. So, if you find CA and TA, then you can solve for NFA Helpful Equations: Long-term debt ratio - LTD/(LTD + TE) CR-CA/CL PM-NI / Sales ROE-NI/TE O $3,851.53 O $3,601.92 O $5,181.07 O $6.733.07 O $2.881.53
A) what is blossoms contribution margin per unit? B) what is blossoms monthly breakeven point? C) what is blossoms contribution margin ratio? What is blossoms monthly breakeven point in sales dollars?
Now suppose that annual unit sales, variable cost, and unit price are equal to their respective expected values—that is, there is no uncertainty. Determine the company's annual profit for this scenario. Round answer to a whole number, if needed.$
Assume the following ratios are constant: Total asset turnover 2.6 Profit margin 6.6 % Equity multiplier 1.5 Payout ratio 25 % What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
4. Will the break-even point would be higher or lower with May’s sales mix than with April’s sales mix? 5. Assume that sales of the Standard racket increase by $20,200. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,200? Do not prepare income statements; use the incremental analysis approach in determining your answer.
1. A company enjoys 30% margin and decides to reduce price by 6%. What % sales increase is needed to offset the reduction? 2. A company enjoys 40% margin and decides to increase the price by 8%. How far can sales drop before the company's profits drop below prior levels?
2. What is the expected contribution margin ratio? Round to the nearest whole percent. 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 5. What is the expected margin of safety in dollars and as a percentage of sales? (Round to the nearest whole percent.) 6. Determine the operating leverage. Round to one decimal place.
You've collected the following information about Groot, Inc.: Profit margin Total asset turnover Total debt ratio Payout ratio = 4.44% = 3.50 = .25 = 29% a. What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Sustainable growth rate b. ROA % 15.54 %
Assume that in 20X2, sales increase by 10 percent and cost of goods sold increases by 20 percent. The firm is able to keep all other expenses the same. Assume a tax rate of 30 percent on income before taxes. What is income after taxes and the profit margin for 20X2?
AutoSave OFF 096DCEP… CB Draw Page Layout Home Insert X [ ✓ Paste B35 A Arial A 1 Chapter 5: Applying Excel 2 3 Data 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses BIU - fx =B31/833 49 50 30 Variable expenses varable 31 Contribution margin 32 Fixed expenses 33 Net operating income 11 12 Compute the CM ratio and variable expense ratio 13 Selling price per unit 14 Variable expenses per unit 15 Contribution margin per unit 16 17 CM ratio 18 Variable expense ratio 19 20 Compute the break-even point 21 Break-even in unit sales 22 Break-even in dollar sales 23 24 Compute the margin of safety 25 Margin of safety in dollars 26 Margin of safety percentage 27 28 Compute the degree of operating leverage 29 Sales 34 35 Degree of operating leverage 36 37 38 39 40 41 42 43 44 45 46 47 48 Ready T 8 9 Enter a formula into each of the cells marked with a ? below 10 Review Problem: CVP Relationships Chapter 5 Form V esc ✓ 10 1 + LO Accessibility: Good to go @ 2…