If the owner would like a margin of safety of 30 units, how many units would the store need to sell? How much operating income would it generate at this level of activity?
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How much will Hixson's net operating income increase if it can grow production and sales from 25,000 units to 26,500 units? 9. What is Hixson's margin of safety at a sales volume of 25,000 units? (Do not round your intermediate values.) 10. What is Hixson's degree of operating leverage at a sales volume of 25,000 units? (Round your answer to 1 decimal place.)
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8. Assume the following information: Amount Per Unit Sales $ 600,000 $ 40 Contribution margin $ 360,000 $ 24 Net operating income $ 240,000 If the selling price per unit increases by 7% and unit sales drop by 5%, then the best of estimate of the new net operating income is: 9. Assume the following information: Amount Selling price $ 30 Variable expense per unit $ 12 Fixed expenses $ 11,500 per month Unit sales 2,070 per month What is the net operating income per month?
Total Per Unit Sales (32,000 units) $256,000 $8.00 Variable Expenses 160,000 5.00 Contribution Margin 96,000 $3.00 Fixed Expenses 50,000 Net Operating Income $46,000 1. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 4%? Net Operating Income = ? 2. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 8%? Net Operating Income = ?
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