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7 [10 points). Maxwell Bicycle Company makes and sells bicycles. The company's contribution margin ratio...

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7 [10 points). Maxwell Bicycle Company makes and sells bicycles. The company's contribution margin ratio is 30%. Last year, the company's margin of safety was $20,000 and breakeven revenues were $100,000. What was Maxwell's net operating income last year? 8 [10 points). Champan Company's 2020 net operating income (NOI) was $30,000. The company's contribution margin ratio was 30%, and total fixed expenses were $7,500. 1) What was Champan's degree of operating leverage in 2020? 2) The company expects a decrease in sales of 12% in 2021 (compared to 2020). Total fixed expenses are expected to remain the same as last year. What is Chapman's estimated NOI in 2021? 9 [10 points). A company makes one product that sells for $100 per unit. Selected information about the company is below: $20 $15 DM per unit DL per unit Variable OH allocation per unit Variable Selling costs Total Fixed cost $10 15% of sales $100,000 How many units must the company sell to earn a target profit of $80,000? A. $1,818 B. $2,000 C. $2,500 D. $4,500

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