Consider each case separately: 1. a. what is the current annual operating income? b. what is the current breakeven point in revenues? compute the new operating income for each of the following changes: 2. a $0.08 per unit increase in variable costs 3. a 10% increase in fixed costs and a 10% increase in units sold 4. a 20% decrease in fixed costs, a 20% decrease in selling price, a 30% decrease in variable cost per unit, and a 35% increase in units sold compute the new breakeven point in units for each of the following changes: 5. a 10% increase in fixed costs 6. a 10% increase in selling price and a $ 30 comma 000 increase in fixed costs

Instructions are listed below

Explanation:

We don't have enough information to answer the question numerically. But, I can provide a few formulas of how to answer it.

A)

Revenue/Sales (+)

Cost of Goods Sold (COGS) (-)

=Gross Profit

Marketing, Advertising, and Promotion Expenses (-)

General and Administrative (G&A) Expenses (-)

=Net operating income

B)Break-even point (dollars) fixed costs/ contribution margin ratio

Contribution margin ratio= (Price - unitary variable cost)/Price

1) Increase in Unitary variable cost:

Contribution margin= price - new unitary variable cost

2) Variance in income= new sales* contribution margin - increase in fixed costs

3) Prepare the income statement again

C) Break-even point= fixed costs/ contribution margin

typically a loft will include modern kitchen and bathrooms, this increases the price tag. lofts also have a good amount of open space, this requires more heating and electricity. lofts are also in older buildings, this means that maintaining the location increases the bill. keep in mind this is without talking about the high state and property taxes.

i hope this you! : )

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