Chapter 6 Homework 2

Chapter 6 Homework 2 - 7) b. Sales $1,500,000 8) Var...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 6 Problem 27 1) a. CM Ratio: , , , = . $600 000$1 500 000 0 4 Break Even: , = , $480 000$15 32 000 skateboards b. Operating Leverage: , , = $600 00$120 000 5 2) CM Ratio: , , , =. $480 000$1 500 000 32 Break Even: , = , $480 000$14 34 286 skateboards 3) , $600 000$14 = , 42 857 skateboards 4) . $40 50 5) CM Ratio: , , , = . $540 000$1 500 000 0 36 Break Even: , = , $912 000$24 38 000 skateboards 6) a. $120,000 + $912,000 = $1,032,000 / $24 = 43,000 skateboards
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 7) b. Sales $1,500,000 8) Var 540,000 9) CM 960,000 10) Fix 912,000 11) NOI 48,000 12) Operating Leverage: , , = $960 000$48 000 20 13)c. If sales are expected to stay the same or decrease I would not build the new factory. If sales were expected to increase, I would support its construction. 14)...
View Full Document

This note was uploaded on 11/16/2009 for the course ACCT 152 taught by Professor Bayak during the Spring '07 term at Lehigh University .

Ask a homework question - tutors are online