Breeze Manufacturing main product is floor fans. Each fan sells for $35 and the variable...

50.1K

Verified Solution

Question

Accounting

image
Breeze Manufacturing main product is floor fans. Each fan sells for $35 and the variable manufacturing cost is 58. Fixed costs to manufacture the product is $192,000. Breeze variable selling cost is $10 per unit and fixed selling cost for the product is $60,000. Currently the company sells 34,000 units. Requiredlusing excel): 15 marks Compute contribution margin Compute breakeven point in dollars Compute margin of safety in units Compute degree of operating leverage Using degree of operating leverage compute new net income if sales increase by 25%. To increase sales management is planning on increasing commission to sales staff by $2 per unit. Advertising will increase by $20,000. This is expected to increase sales by 30%. Should rho 0.51 cry: the change be made

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students