Complete the following questions using Microsoft Excel, as appropriate. Review the grading rubric to confirm you are meeting the assignment requirements.
Zaldor Corporation sells a specialized speaker and has the following information for the current year:
Total Per Unit Percent of Sales
Sales (20,000 units) 1,200,000 60 100%
Variable expenses 800,000 40 ? %
Contribution margin 400,000 20 ? %
Fixed expenses 250,000
Net operating income 150,000
Required:
Calculate the variable expense ratio
Calculate the contribution margin ratio
Calculate break even sales in units
Calculate break even sales in dollars
How many units must be sold to make a profit of $300,000?
Get research paper samples and course-specific study resources under homework for you course hero writing service – Manage ment is considering increasing the quality of its units by spending $3 more per unit in variable costs and adding a quality inspector for an additional $40,000 annual fixed cost. Get research paper samples and course-specific study resources under homework for you course hero writing service – Manage ment believes this change will increase unit sales by 20% at the same price.
Calculate the new profit or loss if the changes are implemented.
Would you recommend management make the changes? Why or why not?
