Marston Company sells a single product at a sales price of $50 per unit. Fixed costs total $15,000 per month, and vari-able costs amount to $20 per unit. If management reduces the sales price of this product by $5 per unit, the sales vol-ume needed for the company to break even will: a. Increase by $5,000. c. Increase by $2,000.b. Increase by $4,500. d. Remain unchanged.

Ozark Metal Company makes a single product that sells for $45.5 per unit. Variable costs are $29.1 per unit, and fixed costs total $65,355 per month. Required: a. Calculate the number of units that must be sold each month for the firm to break even. b. Assume current sales are $414,000. Calculate the margin of safety and the margin of safety ratio. c. Calculate operating income if 5,300 units are sold in a month. d. Calculate operating income if the selling price is raised to $48.5 per unit, advertising expenditures are increased by $10,000 per month, and monthly unit sales volume becomes 6,000 units. e. Assume that the firm adds another product to its product line and that the new product sells for $22 per unit, has variable costs of $16 per unit, and causes fixed expenses in total to increase to $87,000 per month. Calculate the firm's operating income if 5,300 units of the original product and 4,200 units of the new product are sold each month. For the original product, use the…

Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $100 per unit and has a CM ratio of 40% The company's fixed expenses are $459,000 per year. The company plans to sell 12,000 knapsacks this year. Required: 1. What are the variable expenses per unit? Variable expenses per unit 2. Use the equation method for the following e. What is the break-even point in units and in sales dollars? Break-even point in units Break-even point in sales dollars b. What sales level in units and in sales dollars is required to earn an annual profit of $99,000? Sales in units Sales in dollars c. What sales level in units is required to earn an annual after-tax profit of $99,000 if the tax rate is 25%? Sales in units d. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $5 per unit. What is the company's new break-even point in units and in sales dollars? (Do not round Intermediate calculations.…

Mauro Products sells a woven basket for $14 per unit. Its variable expense is $11 per unit and the company's monthly fixed expense is $9,000. Required: 1 Calculate the company's break-even point in unit sales 2 Calculate the company's break-even point in dollar sales Note: Do not round intermediate calculations. 3. If the company's fixed expenses increase by $600, what would become the new break even point in unit sales? In dollar sales? Note: Do not round intermediate calculations. 1. Break-even point in unit sales 2 Break-even point in dollar sales 3. Break-even point in unit sales 3. Break-even point in dollar sales baskets baskets