Ch6 - 6-3 300,000 – 240,000 = 60,000 300,000 = 20(CM...

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Unformatted text preview: 6-3 300,000 – 240,000 = 60,000 / 300,000 = 20% (CM ratio) 60,000 – 45,000 = 15,000 * 20% = 3000 16,500 * 20% = 3300 3300 – 3000 = $300 increase in net operating income (OR 1500 * 20% = $300) 6-5 1) 8x = 6x + 5500 = 2750 units 2) X = .75X + 5500 = $22,000 5500 / (2 / 8) = $22,000 3) 5500 / (8-6) = $2750 4) 5500 / (2 / 8) = $22,000 6-6 1) 140x = 60x + 40,000 +6,000 = 575 units 2) 48,000 / (80 / 140) = $84,000 6-7 1) 8500 / .4 = $21,250 25,000 – 21,250 = $3750 margin of safety 2) 3750 / 25000 = 15% 6-8 1) 36,000 / 12,000 = 3 2) 30% increase in revenue by 10% increase in sales 3) 15,000 * 1.3 = 15,600 Sales… 132,000 Variable Expenses… 92,400 Contribution Margin… 39,600 Fixed Expenses… 24,000 Net Operating Income… 15,600 6-9 1) 120,000 / 150,000 = 80% 2) 150x = 30x + 90,000 = 750 units and $112,500 Predator Original Dollar Sales 100,000 Percent of Total 67% Sales at Break-Even 75,000 Sales Variable Expenses Contribution Margin Fixed Expenses Net operating income 75,000 18,750 56,250 (75,000 / 100,000) * 25,000 = $18,750 (37,500 / 50,000) * 5,000 = $3,750 6-10 1) 40x = 28x + 150,000 = 12,500 units and $500,000 2) $150,000 3) 168,000 / 12 = 14,000 units Sales… 560,000 Variable Expenses… 392,000 Runway 50,000 33% 37,500 Total 150,000 100% 112,500 37,500 3,750 33,750 112,500 22,500 90,000 90,000 0 Contribution Margin… 168,000 Fixed Expenses… 150,000 Net Operating Income… 18,000 4) 600,000 – 500,000 = 100,000 100,000 / 600,000 = 17% 5) 180,000 / 600,000 = 30% 80,000 * 30% = $24,000 6-15 Sales… 1,800,000 Variable Expenses… 1,260,000 Contribution Margin… 540,000 Fixed Expenses… 450,000 Net Operating Income… 90,000 540,000 / 90,000 = 6 (operating leverage) 25% * 6 = 150% 90,000 * 150% = $135,000 ...
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Ch6 - 6-3 300,000 – 240,000 = 60,000 300,000 = 20(CM...

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