Calculate the percentage change in operating income

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Reference no: EM131202807

Golding Company has decided to offer two types of computers: All-in-One desktops and Laptops. Golding provided the following unit data for each product: All-in-One Laptop Price $640 $400 Unit Variable Cost $520 $304 Projected Sales (units) 2,000 1,000 Complete the table below to obtain the company’s projected income statement (for both products) for the coming year. All-in-One Laptop Total Sales Total variable cost Contribution margin Direct fixed cost 60,000 28,000 88,000 Product margin Common fixed cost 46,400 Operating income Sales Dollars Break-Even Approach Calculate the contribution margin ratio for Golding (round to four decimal places): Calculate the total fixed cost: Calculate the break-even point in sales dollars (round to the nearest dollar): Units Sold Break-Even Approach Calculate the sales mix with the lowest whole numbers: All-in-One: Laptop: Complete the following table: Product Price Unit Variable Cost Unit Contribution Margin Sales Mix (lowest whole numbers) Package Contribution Margin All-in-One $640 $520 Laptop 400 304 Package total Calculate the number of packages that must be sold to break-even: packages Calculate the units of each product needed to break-even (round to the nearest whole unit): All-in-One: units Laptop: units Target Income Units Calculate the number of packages that must be sold to earn an operating income of $268,800: packages Calculate the units of each product needed to earn an operating income of $268,800: All-in-One: units Laptop: units Margin of Safety Calculate the margin of safety in dollars for Golding: Calculate the margin of safety in units: All-in-one: units Laptop: units Degree of operating Leverage Calculate the degree of operating leverage (round to four decimal places): Calculate the percentage change in operating income if sales increase by 30% (round to two decimal places):

Reference no: EM131202807

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