QUESTION 1 A company has $20,000 sales and a 38% contribution margin ratio. If sales volume increases 10%, what will happen to NOI/NOL?

QUESTION 1

A company has $20,000 sales and a 38% contribution margin ratio. If sales volume increases 10%, what will happen to NOI/NOL? Include a dollar amount in your response.

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QUESTION 2

Would you recommend paying sales commission on the contribution margin of a product or the sales price? Explain. Use complete sentences.

QUESTION 3

Explain the sales mix reference in the Boeing article for this week. (You may wish to use a ctrl & F to locate the term “sales mix.”) Use complete sentences.

QUESTION 4

Explain the sales mix reference in the Krispy Kreme article for this week. (You may wish to use a ctrl & F to locate the term “sales mix.”) Use complete sentences.

QUESTION 5

What were two other interesting points in the two sales mix articles assigned? (Can be 1 point from each article or 2 points from one article.)

QUESTION 6

Use these “original figures” for questions 6-13. Total Sales = $100; Total Variable Costs = ; Fixed Expenses = $85; Units sold = 200

What is the contribution margin?

QUESTION 7

Use these “original figures” for questions 6-13. Total Sales = $100; Total Variable Costs = $20; Fixed Expenses = $85; Units sold = 200

What is the contribution margin ratio?

QUESTION 8

Use these “original figures” for questions 6-13. Total Sales = $100; Total Variable Costs = $20; Fixed Expenses = $85; Units sold = 200

What is the breakeven point in units? A decimal can be used, or round up to the next whole unit.

QUESTION 9

Use these “original figures” for questions 6-13. Total Sales = $100; Total Variable Costs = $20; Fixed Expenses = $85; Units sold = 200

What is the breakeven point in sales dollars?

QUESTION 10

Use these “original figures” for questions 6-13. Total Sales = $100; Total Variable Costs = $20; Fixed Expenses = $85; Units sold = 200

If the target profit is $15, what is the required sales volume in units? A decimal can be used, or round to the next whole unit.

QUESTION 11

Use these “original figures” for questions 6-13. Total Sales = $100; Total Variable Costs = $20; Fixed Expenses = $85; Units sold = 200

If the target profit is $15, what is the breakeven point in sales dollars?

QUESTION 12

Use these “original figures” for questions 6-13. Total Sales = $100; Total Variable Costs = $20; Fixed Expenses = $85; Units sold = 200

Units sold is unchanged. Sales price increases 10%, variable costs per unit decrease 5%, fixed expenses decrease by $6 from the original figures. What is NOI/NOL?

QUESTION 13

Use these “original figures” for questions 6-13. Total Sales = $100; Total Variable Costs = $20; Fixed Expenses = $85; Units sold = 200

Sales price increases 10%, variable cost per unit decrease 5%, units sold decrease 5%, fixed expenses decrease by $6 from the original figures. What is NOI/NOL?

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