Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The national sales manager believes that if they invest an additional $25,000 in advertising, they would increase sales volume by 10,000 units. Prepare a forecasted contribution margin income statement for Brahma if they incur the additional advertising costs, using this information: Sales (6,500 units at $115)                         $747,500 Variable costs (6,500 units at $69)              448,500 Contribution margin                                      299,000 Fixed costs                                                    19,500 Net income (loss)                                          279,500 The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss Prepare a forecasted contribution margin income statement for Brahma if they incur the additional advertising costs: Brahma Industries Contribution Margin Income Statement

3. A furniture company manufactures desks and chairs. Each desk requires 29 hours to manufacture and contributes $400 to profit, and each chair requires 19 hours to manufacture and contributes $250 to profit. Due to marketing restrictions, a total of 2000 hours are available.   a. Use Solver to maximize the company’s profit. b. What is the maximum profit? c. How many desks and chairs should the company manufacture? d. Of the 2000 available hours, how many hours will be used?

Posters.com is an Internet retailer of high-quality posters. The company has $750,000 in operating assets and fixed expenses of $156,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $4,800,000 per year. The company's contribution margin ratio is 9%, which means an additional dollar of sales results in additional contribution margin, and net operating income, of 9 cents. Required: 1. Complete the following table showing the relation between sales and return on investment (ROI). 2. What happens to the company's return on investment (ROI) as sales increase? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following table showing the relation between sales and return on investment (ROI). Note: Round your percentage answers to 2 decimal places. Sales Net Operating Income $ 4,300,000 $ 231,000 $ 4,400,000 $ 4,500,000 $ 4,600,000 $ 4,700,000 $ 4,800,000 Average Operating Assets $…

Cabin Creek Company is considering adding a new line of kitchen cabinets. The company's accountant provided the following estimated data for these cabinets: Annual sales Selling price per unit Variable manufacturing costs per unit Variable selling costs per unit Incremental fixed costs per year: Manufacturing Selling r Allocated common costs per year: Manufacturing Selling and administrative 800 units $ 3,570 $ 1,570 $ 420 $ 482,400 $ 62,000 $ 87,000 $ 119,000 If the kitchen cabinets are added as a new product line, the company expects that the contribution margin earned from selling its of products will decrease by $214,000 per year. Required: 1. What is the annual financial advantage (disadvantage) of adding the new line of kitchen cabinets? 2. What is the lowest selling price per unit that could be charged for the cabinets and still make it economically desirable for the company to add the new product line? Complete this question by entering your answers in the tabs below. Required…