Help me to do excercise 6-9 and 6-10 pleaseThanks you so much $80 perRequired:1. Using the equation method, solS10,000.$15,000.EXERCISE 6-7 Compute the Break-Even Point [LO6]Required:2.SovCM ratio.CM ratio.EXERCISE 6-8 Compute the Margin of Safety [LO7]next month's budget appear below:Selling price .. .Variable expenses ..Fixed expenses ....Unit sales........$30 per unit$20 per unit$7,500 per month1,000 units per monthRequired:1. Compute the company's margin of safety.2. Compute the company's margin of safety as a percentage of its sales.EXERCISE 6-9 Compute and Use the Degree of Operating Leverage [L08]Engberg Company installs lawn sod in home yards. The company's most recent monthly contribu.tion format income statement follows:AmountPercent of SalesSales.Variable expenses$80,000100%32,00040%Contribution margin48,000Fixed expenses.60%38,000Net operating income....$10,000Required:1. Compute the company's degree of operating leverage.2. Using the degree of operating leverage, estimate the impact on net operating income of a 5%increase in sales.3. Verify your estimate from part (2) above by constructing a new contribution format incomestatement for the company assuming a 5% increase in sales.EXERCISE 6-10 Compute the Break-Even Point for a Multiproduct Company LO9]Lucido Products markets two computer games: Claimjumper and Makeover. A contribution formatincome statement for a recent month for the two games appears on the folowing page: Prepare a new contribution format income statement under each of the following conditions (con-2. The selling price decreases by $1.50 per unit, and the number of units sold increases byEXAMGREAT FOR2400deli EXAMERASERCost-Volume-Profit RelationshipsClaimjumperMakeoverTotal$70,00050,000$30.000$100,000Sales.Variable expenses20,00070,00030,00024,000$10,000$20,000Contribution marginFixed expenses$ 6,000Net operating incomefiequired:1 Compute the overall contribution margin (CM) ratio for the company.2 Compute the overall break-even point for the company in sales dollars.1 Verify the overall break-even point for the company by constructing a contribution format in-come statement showing the appropriate levels of sales for the two products.EXERCISE 6-11 Using a Contribution Format Income Statement [LO1, LO4]Miller Company's most recent contribution format income statement is shown below:TotalPer UnitSales (20,000 units).Variable expenses$300,000180,000$15.009.00$ 6.00Contribution marginFixed expenses.120,00070,000Net operating income$ 50,000Required:aider each case independently):The number of units sold increases by 15%.25%3. The selling prinn inenses increase by $20,000, and the

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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribu. tion format income statement follows: EXERCISE 6-9 Compute and Use the Degree of Ope Amount Percent of Sales 100% Sales... Variable expenses $80,000 32,000 40% 60% Contribution margin Fixed expenses. 48,000 38,000 Net operating income $10,000 Required: 1. Compute the company's degree of operating leverage. 2. Using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. 3. Verify your estimate from part (2) above by constructing a new contribution format income statement for the company assuming a 5% increase in sales.

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribu. tion format income statement follows: EXERCISE 6-9 Compute and Use the Degree of Ope Amount Percent of Sales 100% Sales... Variable expenses $80,000 32,000 40% 60% Contribution margin Fixed expenses. 48,000 38,000 Net operating income $10,000 Required: 1. Compute the company's degree of operating leverage. 2. Using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. 3. Verify your estimate from part (2) above by constructing a new contribution format income statement for the company assuming a 5% increase in sales.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 13PROB

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