Chapter 6 Homework 2

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

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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
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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)...
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## 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 .

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