Practice Exam 16.docx - -If a company increases its sales price per unit for Product A the new breakeven point will a increase b decrease c remain the

Practice Exam 16.docx - -If a company increases its sales...

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-If a company increases its sales price per unit for Product A, the new breakeven point will a. increaseb. decreasec. remain the samed. More info is needed -If a company increases its fixed costs for Product B, then the contribution margin per unit will -A furniture manufacturer specializes in wood tables. The tables sell for $160 and incur $72 in variable costs. The company has $12,320 in fixed costs per month. Expected sales are 215 tables per month.=Required Sales in Units = (Fixed Costs + Target Profit) / CM per Unit=($12,320 + 0) / $88 = 140=Expected Sales - Breakeven Sales = Margin of Safety in Units=215 - 140 = 75=CM / Operating Income = Degree of Operating Leverage= $18,920 / 6,600 = 2.8667-Charlotte Appliances had the following revenue over the past five years:2011 $800,0002012900,00020131,100,00020141,000,00020151,200,000To predict revenues for 2016, Charlotte Appliances uses the average for the past five years. Thecompany's breakeven revenue is $400,000 per year. What is Charlotte Appliances's predicted margin of safety for 2016?
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