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Managerial Accounting : Contribution Margins, Break-even Point and Net Operating IncomeBaker Company has a product that sells for $20 per unit. The variable expenses are $12 per unit, and fixed expenses total $30,000 per year.Required:a. What is the total contribution margin at the break-even
point?b. What is the contribution margin ratio for the product?c. If total sales increase by $20,000 and fixed expenses
remain unchanged, by how much would net operating income be expected to
increase?
d. The marketing manager wants to increase advertising by
$6,000 per year. How many additional units would have to be sold to increase
overall net operating income by $2,000?

Managerial Accounting : Contribution Margins, Break-even Point and Net Operating IncomeBaker Company has a product that sells for $20 per unit. The variable expenses are $12 per unit, and fixed expenses total $30,000 per year.Required:a. What is the total contribution margin at the break-even
point?b. What is the contribution margin ratio for the product?c. If total sales increase by $20,000 and fixed expenses
remain unchanged, by how much would net operating income be expected to
increase?
d. The marketing manager wants to increase advertising by
$6,000 per year. How many additional units would have to be sold to increase
overall net operating income by $2,000?

Managerial Accounting : Contribution Margins, Break-even Point and Net Operating IncomeBaker Company has a product that sells for $20 per unit. The variable expenses are $12 per unit, and fixed expenses total $30,000 per year.Required:a. What is the total contribution margin at the break-even
point?b. What is the contribution margin ratio for the product?c. If total sales increase by $20,000 and fixed expenses
remain unchanged, by how much would net operating income be expected to
increase?
d. The marketing manager wants to increase advertising by
$6,000 per year. How many additional units would have to be sold to increase
overall net operating income by $2,000?

Managerial Accounting : Contribution Margins, Break-even Point and Net Operating IncomeBaker Company has a product that sells for $20 per unit. The variable expenses are $12 per unit, and fixed expenses total $30,000 per year.Required:a. What is the total contribution margin at the break-even
point?b. What is the contribution margin ratio for the product?c. If total sales increase by $20,000 and fixed expenses
remain unchanged, by how much would net operating income be expected to
increase?
d. The marketing manager wants to increase advertising by
$6,000 per year. How many additional units would have to be sold to increase
overall net operating income by $2,000?







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