Business Finance
Zaldor Corporation, accounting homework help

Question Description

Managerial accounting assignment

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Zaldor Corporation sells a specialized speaker and has the following information for the current year: Total Sales (25,000 units) Variable expenses Per Unit Percent of Sales 1,250,000 50 100% 750,000 30 ?% 500,000 20 ?% Contribution margin Fixed expenses 400,000 100,000 Net operating income Required: 1. 2. 3. 4. 5. 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 $250,000? Management 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. Management believes this change will increase unit sales by 20% at the same price. 6. 7. Calculate the new profit or loss if the changes are implemented. Would you recommend management make the changes? Why or why not? You should use an Excel spreadsheet for your answers. ...
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Final Answer

Attached.

Per Unit
Sales
Variable expenses
Contribution margin

$1,250,000.00
$750,000.00
$500,000.00

Fixed expenses
Net operating income

Percent of Sales
$50.00 100.00%
$30.00 60....

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