Tyrene Products manufactures recreational equipment. The operating results for the most recent year for one of its products, a skateboard, are presented below. Sales Variable expan contribution margin fined expenses Net ceerating income Kot put therga par skaitai Management is amous to maintain and perhaps even improve its present level of income from the skateboards Required: 1-a. The company's break even point for the most recent year was 48.000 units. Compute the CM per skateboard. (Do not round intermediate calculations. $2,250,000 1,350,000 300,000 220,000 180,000 Soling pres V expense 1 1-b. Compute the selling price and variable expenses per skateboard. (Do not round intermediate calculations. Round your answers to 2 decimal places) 4 Amount per skateboard per skateboard 1-c. Compute the number of skateboards sold in the most recent year. (Do not round intermedinte calculations.) Number of skalboards 1-d. Compute the degree of operating leverage at the level of sales that you computed in Requirement (c) Degree of operating leverage ved Due to an crease in labour rates, the company estimates that variable expenses will increase by $3.00 per skateboard next year. If this change takes place and the selling price per skateboard remains constant, what will be the new CM ratio and the new break-even point in skateboards? (Do not round intermediate calculations.) Contribution margn tinit sales to break even point % skateboards Help Save & Ext Submit 3. Refer to the data in Requirement (2) above. If the expected change in variable costs takes place, how many skateboards will have to be sold next year to earn the same net operating Income, $180,000, as in the most recent year? (Do not round intermedinte calculations.) 4. Refer again to the data in Requirement (2) above. The president has decided that the company may have to raise the selling price of as skateboards. If Tyrene Products wants to maintain the same CM ratio as last year what selling price per skateboard must it charge next year to cover the increased labour costs? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Swing pace 5. Refer to the original data. The company is considering the construction of a new, automated plant. The new plant would result in the contribution margin per unit increasing by 60% but it would cause fixed costs to increase by 90% if the new plant is built, what would be the company's new CM ratio and new break-even point in skateboards? (Do not round intermediate calculations.) Contibution megn hist sales to treak even point skateboards 6. Refer to the data in Requirement (5) above. a. If the new plant is built, how many skateboards will have to be sold next year to earn the same net operating income. $180,000, as last year? (Do not round intermediate calculations.) Mueber of shanboards b-1. Assume that the new plant is constructed and that next year the company manufactures and sells the same number of skateboards as sold in the most recent year Prepare a contribution format income statement. (Do not round intermediate calculations.) Contribution Income Statement b-2. Compute the degree of operating leverage. (Do not round intermediate calculations.) Degree of operating leverage c. This part of the question is not part of your Connect assignment. < Prev 12 of 14 Next >