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Recuired infermetion Problem-12-25 (Algo) CVP analytis-whot-if quections, breakeven LO 12-7, 12:-, 12-9, 12-10 Problem 12.25 (Algo) Port e Noteis seiect all that apply. Check Ail That mpgy Ae varabie expentses insiy Great? Aie fucd exoceses redy intert Recutred informetion Problem 12-25 (Algo) CVP anelysls-whotolf guestions; breokeven Lo 12-7, 12-8, 12-9, 12-10 per unit, and fixed expenses torat 550,240 per mont Whips athemcse stited consider each ratqumenent ceparatery? Problem 12.25 (Algo) Part f f. 1. Cakculote the monthy operbesng income (or loss) that would recul frort a si per unt ponce increase ond o 56.000 ber marim 2. is the increase in acverusing exponse jusatied by the price increase? Complete this question by entering your answers in the tabs below. Caiculate the monthly operating income (or loss) that weuld result from a $1 per unit price ingrease and a $6,000.per month Notei on not round intermediate calculations. Hequires inturmence Problem 12.25 (Algo) cVp nnblyais - whnt dt quectionst breskevtn LO 12-7, 12-0, 12-9, 12.10 Problem 12-25 (Algo) Pert g \& h solory ci $2500 per month. 2. Winch strategf would you secominend? Cempleta this thustion Ey entering your answers in the balis below. or iow? Problem 12-25 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information applies to the questions displayed below] Marathon Company makes and sells a single product. The current selling price is $19 per unit variable expenses are \$tt 4 per unit, and fixed expenses totai $58.240 per month. (Uniess otherwise stated, consider each requirement separately) Problem 12-25 (Algo) Part e What questions would have to be answered about the cost-volume-profit analysis simplifyng assumptons before adopting the phice cut stratedy part d? Note: Select all that epply. Check All That Apply Does the increose in volume move fixed expenses into a new relevant range? e. What questions would have to be answered about the cost-volume-proft analysis simplifing assumptions before adopting the prike cut strategy of part d? Note: Select all that apply. Check All That Apply Does the increase in volume move foced expenses into o new relevant range? Does the increase in volume move variable expenses into a new retevant range? Are vartable expenses really linear? Are fixed expenses really linear? Problem 12-2.5 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information appiles to the questions dispayed below] Marathon Company makes and sells a single product. The current selling price is $19 per unt variable experces are 5t14 per unit, and fixed expenses total $58,240 per month. (Uniess otherwise stated, consider each requirement separatedy) Problem 12-25 (Algo) Part f 1. 1. Caiculate the monthly operating income (or loss) that would result from a $1 per unt price increase and a $6,000 per manth Increase in advertisang expenses, both reiative to the onginal data. Assume a sales volume of 7,400 units per month 2. is the increase in advertising expense justifed by the price inciease? Complete this question by entering your answers in the tabs below. Calculate the monthly operating income (or loss) that would result from a $1 per unit price increase and a $6,000 per month Caiculate the monthily operating income (or ioss) that would result from a $1 per unit price increase and a $6,000 pei Note: Do not round intermediate calculations. Required Information Problem 12-25 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information appives to the questions displayed below]. Marathon Company makes and selis a single product. The current selling price is $19 per unst. Vanable expenses are $11.4 per unit, and fixed expenses total $58,240 per month. (Uniess otherwise stated, consider each requirement separateiy) Problem 12-25 (Algo) Part g&h Management is considenng a change in the fales force compensation plan. Currently each of the firm's two salespeople is paid a salary of $2,500 per month. 9. 1. Calculate the monthly operating income (or loss) that would refilt from changing the compensation plan to a satary of 5400 per month, plus a commission of $1 per unit, assuming a sales volume of 7,400 units per month. 2. Calculate the monthly operating income (or loss) that woukd result from changing the compensabon pan to a salary of $400 per month. plus a commission of $1 per unit, assuming a sales volume of 7.000 units per month. h. 1. Assuming that the sales volume of 7,000 units per month achieved in part g could also be achieved oy increasing advertising by $1,000 per month instead of changing the sales force compensation plan. What would be the operating income or loss? 2. Which strategy would you recommend? Complete this question by entering your answers in the tabs below. month, plus a commission of $1 per unit, assuming a sales volume of 7,000 units per month h. 1. Assuming that the sales volume of 7,000 units per month achieved in pait g could aiso be achieved by increasing adyerting by $1,000 per month instead of changing the sales force compensation plan. What would be the operating income or ioss? 2. Which strategy would you recommend? Complete this question by entering your answers in the tabs below. 9-1. Calculate the monthly operating income (or loss) that would result from changing the compensation plan to a salary af $400 per month, plus a commission of $1 per unit, assuming a sales volume of 7,400 units per month. g-2. Calculate the monthly operating income (or loss) that woild result from changing the compensation blan to a salary of Note: Do not round intermedlate calculations. $400 per month, plus a commission of $1 per unit, assuming a nales volume of 7,000 unite per month. Note: Do not round intermediate calculations, Losses should be indicated by a minus sion. h-1. Assuming that the sales volume of 7,000 units per month achleved in part g could also be achieved by increasing advertising by $1,000 per month instead of changing the sales force compensation plan. What would be the operating income Note: Do not round intermediate calculations. Losses should be indicated by a minus sion. or loss? Recuired infermetion Problem-12-25 (Algo) CVP analytis-whot-if quections, breakeven LO 12-7, 12:-, 12-9, 12-10 Problem 12.25 (Algo) Port e Noteis seiect all that apply. Check Ail That mpgy Ae varabie expentses insiy Great? Aie fucd exoceses redy intert Recutred informetion Problem 12-25 (Algo) CVP anelysls-whotolf guestions; breokeven Lo 12-7, 12-8, 12-9, 12-10 per unit, and fixed expenses torat 550,240 per mont Whips athemcse stited consider each ratqumenent ceparatery? Problem 12.25 (Algo) Part f f. 1. Cakculote the monthy operbesng income (or loss) that would recul frort a si per unt ponce increase ond o 56.000 ber marim 2. is the increase in acverusing exponse jusatied by the price increase? Complete this question by entering your answers in the tabs below. Caiculate the monthly operating income (or loss) that weuld result from a $1 per unit price ingrease and a $6,000.per month Notei on not round intermediate calculations. Hequires inturmence Problem 12.25 (Algo) cVp nnblyais - whnt dt quectionst breskevtn LO 12-7, 12-0, 12-9, 12.10 Problem 12-25 (Algo) Pert g \& h solory ci $2500 per month. 2. Winch strategf would you secominend? Cempleta this thustion Ey entering your answers in the balis below. or iow? Problem 12-25 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information applies to the questions displayed below] Marathon Company makes and sells a single product. The current selling price is $19 per unit variable expenses are \$tt 4 per unit, and fixed expenses totai $58.240 per month. (Uniess otherwise stated, consider each requirement separately) Problem 12-25 (Algo) Part e What questions would have to be answered about the cost-volume-profit analysis simplifyng assumptons before adopting the phice cut stratedy part d? Note: Select all that epply. Check All That Apply Does the increose in volume move fixed expenses into a new relevant range? e. What questions would have to be answered about the cost-volume-proft analysis simplifing assumptions before adopting the prike cut strategy of part d? Note: Select all that apply. Check All That Apply Does the increase in volume move foced expenses into o new relevant range? Does the increase in volume move variable expenses into a new retevant range? Are vartable expenses really linear? Are fixed expenses really linear? Problem 12-2.5 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information appiles to the questions dispayed below] Marathon Company makes and sells a single product. The current selling price is $19 per unt variable experces are 5t14 per unit, and fixed expenses total $58,240 per month. (Uniess otherwise stated, consider each requirement separatedy) Problem 12-25 (Algo) Part f 1. 1. Caiculate the monthly operating income (or loss) that would result from a $1 per unt price increase and a $6,000 per manth Increase in advertisang expenses, both reiative to the onginal data. Assume a sales volume of 7,400 units per month 2. is the increase in advertising expense justifed by the price inciease? Complete this question by entering your answers in the tabs below. Calculate the monthly operating income (or loss) that would result from a $1 per unit price increase and a $6,000 per month Caiculate the monthily operating income (or ioss) that would result from a $1 per unit price increase and a $6,000 pei Note: Do not round intermediate calculations. Required Information Problem 12-25 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information appives to the questions displayed below]. Marathon Company makes and selis a single product. The current selling price is $19 per unst. Vanable expenses are $11.4 per unit, and fixed expenses total $58,240 per month. (Uniess otherwise stated, consider each requirement separateiy) Problem 12-25 (Algo) Part g&h Management is considenng a change in the fales force compensation plan. Currently each of the firm's two salespeople is paid a salary of $2,500 per month. 9. 1. Calculate the monthly operating income (or loss) that would refilt from changing the compensation plan to a satary of 5400 per month, plus a commission of $1 per unit, assuming a sales volume of 7,400 units per month. 2. Calculate the monthly operating income (or loss) that woukd result from changing the compensabon pan to a salary of $400 per month. plus a commission of $1 per unit, assuming a sales volume of 7.000 units per month. h. 1. Assuming that the sales volume of 7,000 units per month achieved in part g could also be achieved oy increasing advertising by $1,000 per month instead of changing the sales force compensation plan. What would be the operating income or loss? 2. Which strategy would you recommend? Complete this question by entering your answers in the tabs below. month, plus a commission of $1 per unit, assuming a sales volume of 7,000 units per month h. 1. Assuming that the sales volume of 7,000 units per month achieved in pait g could aiso be achieved by increasing adyerting by $1,000 per month instead of changing the sales force compensation plan. What would be the operating income or ioss? 2. Which strategy would you recommend? Complete this question by entering your answers in the tabs below. 9-1. Calculate the monthly operating income (or loss) that would result from changing the compensation plan to a salary af $400 per month, plus a commission of $1 per unit, assuming a sales volume of 7,400 units per month. g-2. Calculate the monthly operating income (or loss) that woild result from changing the compensation blan to a salary of Note: Do not round intermedlate calculations. $400 per month, plus a commission of $1 per unit, assuming a nales volume of 7,000 unite per month. Note: Do not round intermediate calculations, Losses should be indicated by a minus sion. h-1. Assuming that the sales volume of 7,000 units per month achleved in part g could also be achieved by increasing advertising by $1,000 per month instead of changing the sales force compensation plan. What would be the operating income Note: Do not round intermediate calculations. Losses should be indicated by a minus sion. or loss

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