0 Required information PR 7-41 (Static) CVP Graph; Cost Structure; Operating Leverage (LO 7-2,7-3, 7-4, 7-8) [The following information applies to the questions displayed below.] Athletico Incorporated manufactures warm-up suits. The company's projected income for the coming year, based on sales of 160,000 units, is as follows: Sales Operating expenses: Variable expenses Tixed expenses Total expenses Net Income $ 2,000,000 3,000,000 $ 8,000,000 PR 41 (Static) Part 2: Calculate the firm's break-even point for the year in sales dollars. Required 2 5,000,000 $3,000,000 2. Calculate the firm's break-even point for the year in sales dollars. 3. What is the company's margin of safety for the year? 4. Compute Athletico's operating leverage factor, based on the budgeted sales volume for the year. 5. Compute Athletico's required sales in dollars in order to earn income of $4,500,000 in the coming year. 6. Show the Athletico's cost structure and indicate the percentage of the Athletico's revenue represented by each item on the income i statement Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 51 Required 6

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