Unformatted text preview: 5. Assume that XX% of the Company’s operating expenses is fixed. What is the trend in the contribution margin ration over the last three years? What is the trend in the breakeven point for operations measured in sales dollars over the last three years? What is the trend in the margin of safety? 6. How would the results change if the proportion of operating expenses that are fixed increases to XX%? If the proportion of operating expenses that are fixed falls to XX%? 7. Assuming that fixed costs remain unaffected, how would operating income change if sales decline by 10%? How would operating income change if sales increase by 10%? 8. Prepare a memo to the CEO interpreting the results of the analyses, including a CVP chart for the most recent year. Discuss your key assumptions and the importance of those assumptions to the analysis....
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This note was uploaded on 07/08/2011 for the course ACG 4352 taught by Professor Nure. during the Spring '11 term at University of Florida.
- Spring '11
- Cost Accounting