Required: a Calculate break even point in dollars and sales for Champion Sports. b. If 35,000 pieces of memorbilia are sold this year, what will the net operating income for Champion Sports Company be? c. If commission is increased by $1.25 per unit sold and the result is 10% increase in unit sales, what will the new net operating income be? d. Refer to the original data. If a $30,000 increase in advertising costs yields a 6% increase in unit sales, what will the new net operating income be? e. Refer to #d. What is the new break even point in units and sales? f. Of all the alternatives given, which is the best based on quantitative data only?

Required: a Calculate break even point in dollars and sales for Champion Sports. b. If 35,000 pieces of memorbilia are sold this year, what will the net operating income for Champion Sports Company be? c. If commission is increased by $1.25 per unit sold and the result is 10% increase in unit sales, what will the new net operating income be? d. Refer to the original data. If a $30,000 increase in advertising costs yields a 6% increase in unit sales, what will the new net operating income be? e. Refer to #d. What is the new break even point in units and sales? f. Of all the alternatives given, which is the best based on quantitative data only?

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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