1) Scott Corporation has provided the following contribution format income statement. All questions concern situations...
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1) Scott Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Round to nearest dollar or whole unit Required: a. What is the contribution margin ratio? b. If sales increase to 5,050 units, what would be the estimated increase in net operating income? c. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the estimated net operating income? d. What is the break-even point in unit sales? e. What is the margin of safety in dollars? f. What is the degree of operating leverage? g. If sales decrease by 5% because the advertising budget a (fixed cost) was slashed by $10,000, what would be the new net operating income? h. What is variable expense ratio? i) What is breakeven point in dollars? j) Scott looking at a target profit - $45,000 instead of status quo, how many units must be sold to pull this off? k) what is margin of safety percentage? 1) what is estimated increase in NOI if there is an estimated 50% increase in sales
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1) Scott Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Round to nearest dollar or whole unit Required: a. What is the contribution margin ratio? b. If sales increase to 5,050 units, what would be the estimated increase in net operating income? c. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the estimated net operating income? d. What is the break-even point in unit sales? e. What is the margin of safety in dollars? f. What is the degree of operating leverage? g. If sales decrease by 5% because the advertising budget a (fixed cost) was slashed by $10,000, what would be the new net operating income? h. What is variable expense ratio? i) What is breakeven point in dollars? j) Scott looking at a target profit - $45,000 instead of status quo, how many units must be sold to pull this off? k) what is margin of safety percentage? 1) what is estimated increase in NOI if there is an estimated 50% increase in sales 