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Financial & Managerial Accounting (16th Edition) Chapter 20 Exercise 8. Please answer attached image.

a. Contribution margin ratio. b. Sales volume (in dollars) required to break even. c. Sales volume (in dollars) required to earn an annual operating income of $45 d. The margin of safety sales volume if annual sales total 40,000 units. e. Operating income if annual sales total 40,000 units. Arrow Products typically earns a contribution margin ratio of 25 percent and h as c 20.8 20,000 to olume. costs of $80.000. Arrow's general manager is considering spending an additional $2 one of the following 1. Start a new ad campaign that is expected to increase sales revenue by 5 percent 2. License a new computerized ordering system that is expected to increase Arrow's comtribolin as margin ratio to 30 percent. Sales revenue for the coming year was initially forecast to equal $1,200,000 (that is, witho implementing either of the above options). a. For each option, how much will projected operating income increase or decrease relative t initial predictions? b. By what percentage would sales revenue need to increase to make the ad campaign as atric tive as the ordering system? manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Manage recently finished analyzing the results of the company's operations for the current break-even point of 40.000 units, the company's total variable costs are $50.000 and is costs amount to $20,000. a. Calculate the contribution margin per unit. b. Calculate the company's margin of safety if monthly sales total 45,000 units. c. Estimate the company's mo

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