Required;
1. Assuming fixed costs and net sales are spread evenly throughout the year, determine Ventana’s monthly break-even point in (a) units and (b) dollars.
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2. Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual profit
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3. Determine the percentage increase of annual profits if Ventana Inc. increases its selling price by 23% and all other factors (including demand) remain constant.
4. Assume the price remains at $49 per unit and variable costs remain the same per unit, but fixed costs increase by 20% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in required # 2
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5. Determine the sales required to earn an operating income of $370,000 after tax. Perma Inc.’s income tax is 30%. Accounting homework help
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